Before Applying Principal Substantive Tests to the Details of Accounts

question 681

Multiple Choice

Before applying principal substantive tests to the details of accounts at an interim date prior to the balance sheet date, an auditor should:

• A) Assess control risk at a low level for the assertions embodied in the accounts selected for interim testing.
• B) Determine that the accounts selected for interim testing are not material to the financial statements taken as a whole.
• C) Consider whether the amounts of the year-end balances selected for interim testing are reasonably predictable.
• D) Obtain written representations from management that all financial records and related data will be made available.

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Definitions:

Cultural Preference

Refers to the predispositions and choices influenced by an individual's cultural background, affecting various aspects of behavior and decision-making.

Superior

An individual who holds a higher position or rank, often having authority over others within an organizational hierarchy.

Discomfort

a mild state of physical or psychological unease, often less intense than pain or distress, potentially caused by discomforting environment, situation, or stimulation.

Unfamiliar Culture

A set of social norms, beliefs, and practices that is different from one's own and often requires adjustment and learning to understand.