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Forums › ACCA Forums › ACCA AA Audit and Assurance Forums › Directional testing
Link the type of account with the purpose of the primary test in directional testing.
Formula 1:
Assets, expense( Debit)= overstatement
Liabilities, income( Credit)= understatement
Formula 2:
Asset = overstatement
income= overstatement
Liabilities= understatement
Expense= understatement
Which formula is correct? let me answer if possible, thanks.
