A duel-purpose test provides both control effectiveness evidence and substantive evidence.

Question

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A duel-purpose test is designed to provide both control effectiveness evidence and substantive evidence. Control effectiveness evidence is obtained when the test is used to determine whether the organization's internal controls are functioning as intended. Substantive evidence is obtained when the test is used to support a specific financial statement assertion, such as the completeness or accuracy of a balance or transaction. By providing both types of evidence, a duel-purpose test can help auditors to achieve their overall objective of expressing an opinion on the fairness of the financial statements.

A Duel-Purpose Test Provides Both Control Effectiveness Evidence and Substantive