In the context of audit, what are 'substantive tests' designed to accomplish?
A、To establish whether internal controls are being applied as prescribed
B、To identify errors and omissions in financial records
C、To establish the causes of errors or omissions in financial records
D、To establish an audit trail
A、To establish whether internal controls are being applied as prescribed
B、To identify errors and omissions in financial records
C、To establish the causes of errors or omissions in financial records
D、To establish an audit trail
【参考答案及解析】
Rationale: Substantive tests 'substantiate' the figures in the accounts. They are used to discover whether figures are correct or complete, not why they are incorrect or incomplete, or how the figures 'got there'. Option A is the aim of compliance tests
Rationale: Substantive tests 'substantiate' the figures in the accounts. They are used to discover whether figures are correct or complete, not why they are incorrect or incomplete, or how the figures 'got there'. Option A is the aim of compliance tests