Ask Question
BusinessBusiness
9 March, 19:14

A strong internal control system will reduce the amount of substantive testing that must be performed. A) True B) False

+4
Answers (1)
  1. 9 March, 20:10
    0
    A) True

    Explanation:

    The internal control structure deals with the rules, laws, procedures, practices that vary from company to company that are necessary to attain an organization's goals and objectives.

    The substantive testing is an audit process aimed at checking the accuracy and reliability of the financial statements. To check if the financial statements are free from any errors, mistakes, fraud, etc. that can change users' decisions.

    The financial statements should be relevant, reliable and finalize in all respects.

    Therefore, a strong internal system will reduce the quantity of substantive testing required.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A strong internal control system will reduce the amount of substantive testing that must be performed. A) True B) False ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Maryland Incorporated produces toys. Total manufacturing costs are $360,000 when 50,000 toys are produced. Of this amount, total variable costs are $140,000.
Answers (1)
The balance sheet shows the following accounts and amounts Inventory. $84,000, Long-term Debt 125.000; Common Stock $60,000; Accounts Payable $44,000; Cash $132,000, Buildings and Equipment $390,000: Short-term Debt $48.
Answers (1)
PA10. LO 6.4Carlton’s Kitchen’s three cost pools and overhead estimates are as follows: Compare the overhead allocation using: The traditional allocation method The activity-based costing method (Hint: the traditional method uses machine hours
Answers (1)
Identify the guideline that should be followed by a supervisor to discourage unions.
Answers (1)
On May 28, 2021, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $540 million.
Answers (1)
New Questions in Business
Near the end of the eighteenth century, the dollar: a. was a nickname for the Spanish Peso. b. was more plentiful than any other coin. c. was customarily used to reckon accounts. d. All of the above are correct.
Answers (1)
The type of vertical marketing system that achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership is referred to as Multiple Choice a corporate vertical
Answers (1)
Lopez Sales Company had the following balances in its accounts on January 1, 2018: Cash$68,000 Merchandise Inventory 48,000 Land 108,000 Common Stock 88,000 Retained Earnings 136,000 Lopez experienced the following events during 2018: Sold
Answers (1)
Present value: tracy chapman is saving to buy a house in five years. she plans to put 20 percent down at that time, and she believes that she will need $35,000 for the down payment. if tracy can invest in a fund that pays 9.
Answers (1)
If a firm sells a total of 100 shares of stock, then a. the supply of, and demand for, those shares determine the price per share. b. the firm is engaging in equity finance. c. each share represents ownership of 1 percent of the firm. d.
Answers (1)
Home » Business » A strong internal control system will reduce the amount of substantive testing that must be performed. A) True B) False
Sign Up Forgot Password?