What are the characteristics of Substantive Tests?

Q: What’s in an audit?

A: Audit definition -  Audit is an independent examination of financial information of an entity…

Q: Distinguish between tests of controls and substantive testing.

A:

Q: What have been the results of empirical tests of the dividendtheories?

A: Answer: Constructing a perfect empirical test of the relation between pay-out strategy and the…

Q: What does Vouching test?

A: Vouching is the process that involves reviewing of original evidence to check whether the…

Q: What is the difference between Test of controls and Substantive procedures, give an example of each…

A: An audit assesses the integrity of a company's financial statements as well as the efficacy of its…

Q: What analytical procedures might be informative regarding the existence assertion?

A: The existence of assertion is the assertion that liabilities, assets and shareholders equity…

Q: What is Glass-Steagall Act?

A: Glass-Steagall Act splits up the investment and commercial banking segments of an investment bank.

Q: ions of the study"?

A: Scope refers to the area of the extent or to the limits a study can be studied or explored.

Q: What is the relationship between tests of controls and substantive tests?

A: Audit Planning:   Audit planning is the first step in the auditing process. Auditor gathers all the…

Q: What is the relationship between ARIA and ARO for tests ofcontrols?

A: Auditing: Auditing refers to an independent examination of financial information of any…

Q: When are analytical procedures required, and when are they optional?

A:

Q: What is the purpose of a Limit Test?

A: Definition:   Limit test: It checks the data by evaluating it with the predetermined upper and…

Q: What is a reasonableness test?

A: Reasonableness tests is an analytical procedure used to examine the validity of the accounting…

Q: What are the two primary ways to conduct substantive tests? Explain how the tests are different.

A: Substantive testing: Substantive testing is the last phase of auditing process where an auditor…

Q: How can you explain the difference and connection of the Test of Controls and Substantive Testing

A: Both are further audit procedures

Q: What is an attestation engagement?

A: Attestation Engagement: An association between the client and the certified public accountant where…

Q: How does the use of scenarios differ from sensitivity analysis?

A: Sensitivity analysis and scenario analysis are the assessment techniques that are used in investment…

Q: Conduct Breusch-Godfrey test the hypothesis stated?

A:

Q: In what ways can independent verification occur?

A: Independent Verification of business activities of a company can be done various ways. Some of them…

Q: t is “inquiry” and “observation” procedures? Give the strengths and weaknesses of these tests?

A: This method is often used in conjunction with other, more reliable method. For example, an auditor…

Q: What are the benefits of audit planning?

A: Introduction:- Audit Planning play very important role to complete the audit effectively within the…

Q: what are the advantages of using Analytical Procedures as Substantive Tests

A: solution concept Analytical Procedures as Substantive Tests               Analytical procedure means…

Q: What role does the audit trail play in terms of configaration?

A: Audit trail is a series of documents, files or other evidence of accounting transaction which are…

Q: Which of the following are substantive tests?

A: For identifying whether the following are substantive tests or not we need to first identify what is…

Q: What is objective risk

A: Risk means the possibility of happening loss. Risk is directly related to the loss. If the amount of…

Q: what is a validity check?

A:

Q: What is the focus of Analytical Procedures?

A: Audit: Audit is the process of verification of the compliance of the financial statements.

Q: What are the Effects of Prepayment Illustrated?

A: Prepayments are mainly related with mortgage backed securities & corporate bonds. MBS or…

Q: How are the sufficiency and appropriateness of evidence related to detection risk?

A: Audit Evidence:   The pieces of evidence provided by the audit team to prove their opinion with…

Q: How does the source of evidence affect its reliability?

A:

Q: Explain the purpose of substantive testing and give examples of the main types of substantive tests.

A: Substantive Testing: Meaning: It is an audit procedure that helps examine the supporting documents…

Q: Conduct proper hypothesis testing?

A: Hypothesis testing is also called as statistical tests. The test which is conducted to make…

Q: Define the term confirmatory value.

A:

Q: What is Roll’s critique of CAPM tests?

A: Capital asset pricing model is a model that is used to estimate the expected return on an asset. In…

Q: What is the difference in a data and findings?

A: Data is the combination of raw facts which is used for providing information and conclusions to the…

Q: What is the relationship between Evidence and Detection Risk?

A: Detection risk is the risk that an auditor will not find a material misstatement in a client's…

Q: What are two potential tests that can be conductedto verify the CAPM? What are the results of…

A: The Capital Asset Pricing Model (CAPM) illustrates the connection between systematic risk and…

Q: what is stare basis?

A: Stare Decisis is a rule that obligates courts to follow decided cases i.e. it means to stand on…

Q: What is an audit program

A: Audit program An audit programme is a detailed, written statement designed by the auditor indicating…

Q: Has the validity of the CAPM been confirmed through empirical tests?

A: Introduction: The model of capital asset pricing is a formula that determines the relation between…