When Substantive Tests Are Performed before the Balance Sheet Date

question 47

Multiple Choice

When substantive tests are performed before the balance sheet date, at a minimum 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 analytical procedures, including comparison of the account balances at the two dates.
• C) reconfirm all balances that were confirmed at interim.
• D) confirm all balances that were not confirmed at interim.
• E) perform tests of reasonableness on all balances that were not confirmed at interim.

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Definitions:

Tetraiodothyronine

Also known as thyroxine or T4, it's a thyroid hormone that plays crucial roles in metabolism and growth.

Thyroxine

A hormone produced by the thyroid gland, essential for regulating metabolism, growth, and development.

Relaxin

Polypeptide hormone secreted by the corpus luteum and placenta during pregnancy; facilitates the birth process by causing a softening and lengthening of the pubic symphysis and cervix.

FSH Secretion

The release of Follicle Stimulating Hormone, a gonadotropin involved in the regulation of reproductive processes, such as growth of ovarian follicles in women and spermatogenesis in men.