In Practice, Early Substantive Testing of Account Balances Is Done

question 12

Multiple Choice

In practice, early substantive testing of account balances is done only when:

• A) the client has a calendar year end.
• B) the client has reporting requirements under the Securities Acts.
• C) evidence indicates effective control policies and procedures.
• D) the primarily substantive approach is taken.
• E) internal controls are weak.

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Definitions:

Government Guiding

The involvement or direction by government agencies in shaping and influencing the economic policies and practices within a country.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services at all levels within a society.

Individual Decision Making

The process by which individuals make choices or judgments from among different options or possibilities, often influenced by personal preferences, economic factors, or available information.

Principle

A fundamental truth or proposition that serves as the foundation for a system of belief, behavior or reasoning.