When Substantive Procedures Are Performed Before the Balance Sheet Date

question 2

Multiple Choice

When substantive procedures are performed before the balance sheet date the auditor should, at or after the balance sheet date:

• A) obtain a letter from management stating that no significant changes occurred in the account balances between the two dates.
• B) perform a comparison of the account balances at the two dates.
• C) confirm all balances that were not confirmed at interim.
• D) perform tests of reasonableness on all balances that were not confirmed at interim.

---

Definitions:

Jung

Carl Jung, a Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for his theories of the collective unconscious and archetypes.

Unsociable

Characteristic of someone who is not seeking or enjoying the company of others; unfriendly or aloof.

Extravert

A personality type characterized by sociability, talkativeness, assertiveness, and high levels of emotional expressiveness.

Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology.