Dotawed to Or Dances QUESTION 4 Select the statements is not correct? No matter how good a client's system of internal control may be, some substantive procedures must be performed to wait whether transactions and balances are correctly recorded. It is often convenient, and permissible, to carry out tests of controls and substantive tests of transactions simultaneously If tests of controls indicate weaknesses, substantive tests may need be expanded. Tests of control procedures for testing internal control effectiveness need to be performed whether or not the matter intends to rely on the controls. QUESTION 5 Materiality can be explained as: Materiality is determined by reference to specific quantitative guidelines established by the AICPA. Materiality depends only on the dollar amount of an item relative to other items in the financial statements. Materiality is mainly a matter of professional judgment. Materiality depends on the nature of an item but not on the dollar amount of the item. Click Save All Answers to save all answers