Performing Substantive Tests of Balances Before the Year-End Is Only

question 94

True/False

Performing substantive tests of balances before the year-end is only advisable if the internal controls have already been assessed as ineffective.

---

Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument.

Common Stock

Refers to shares that represent ownership in a corporation, providing voting rights and dividends, but with no fixed dividend rate.

Shares Outstanding

The total number of a company's shares that are currently owned by shareholders, including restricted shares.

Reacquired

Refers to assets or shares that a company buys back from investors or shareholders.