If an Auditor Performs Substantive Tests of Final Balances Before

question 74

Multiple Choice

If an auditor performs substantive tests of final balances before the year end, he or she must check activities in the period between the date of this work and the year- end. This period is known as the:

• A) continuous period.
• B) roll forward.
• C) pre- balance date period.
• D) interim period.

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Definitions:

Households

Economic units consisting of all individuals living in a single residence, making decisions about consumption, savings, and investment.

Business Inputs

Goods or services that are used in the production process of other goods or services, including raw materials, components, and labour.

Command Economy

An economic system where the government, rather than the free market, determines what goods should be produced, how much should be produced, and the price at which goods will be offered for sale.

Political Hierarchy

A system of organization within a political entity or government where individuals or groups are ranked one above the other based on authority or power.