Final answer:
The statement is true - there are five general types of audit tests.
Step-by-step explanation:
The statement 'There are five general types of audit tests' gives two options to choose from: a) True and b) False. Based on the information provided, the correct answer is a) True. There are indeed five general types of audit tests:
- Test of controls
- Substantive tests of transactions
- Substantive analytical procedures
- Test of details of balances
- Risk assessment procedures
The statement 'There are five general types of audit tests' is false. In auditing, practitioners commonly refer to multiple types of tests, but there isn't a standard limit to five. The actual number and types of tests can vary depending on the context and specific auditing practices. However, some well-known types of audit tests include substantive tests, compliance tests, risk assessment procedures, tests of controls, and substantive procedures related to transactions. These tests help in evaluating different aspects of the financial statements and internal controls of an entity.