When designing tests of controls and substantive tests of transactions for cash receipts, it is important to remember that
A) the test of controls are designed to test for monetary misstatements.
B) auditors use the same methodology for designing tests of controls and substantive tests of transactions for cash receipts as they use for sales.
C) the tests of controls are not dependent on the controls the auditor identifies.
D) the tests of controls is not dependent on whether the company being audited is publicly traded.
B
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Harrison hires an agent to look for a three-bedroom house in Atlanta. Elaine, the agent, finds a three-bedroom house in Harrison's budget but buys it herself without informing Harrison. This is an instance of the agent's ________
A) self-dealing B) conflict of interest with the principal C) competing with the principal D) usurping an opportunity
Deposits of Social Security and Medicare taxes may be made on Form 8109
Indicate whether the statement is true or false