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.

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Definitions:

Product Line

A group of related products marketed by a company that serves a particular category of goods or services.

Soft Drinks

Non-alcoholic beverages that are usually carbonated and contain various flavorings and sweeteners.

Family Branding

A marketing strategy where a company markets multiple products under the same brand name to leverage brand equity.

Brand Name

Part of a brand consisting of words or letters that form a name that identifies and distinguishes an offering from those of competitors.