Applying Substantive Tests to the Details of Asset and Liability

question 1

Multiple Choice

Applying substantive tests to the details of asset and liability accounts as of an interim date,rather than as of the balance sheet date:

• A)Eliminates the use of certain statistical sampling methods that would otherwise be available.
• B)Presumes that the auditor will reperform the tests as of the balance sheet date.
• C)Should be especially considered when there are rapidly changing economic conditions.
• D)Potentially increases the risk that errors which exist at the balance sheet date will not be detected.

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Definitions:

Somatogenic Approach

A perspective in psychology that emphasizes the physical causes of mental disorders, often focusing on genetics, brain structure, and biochemistry.

Positive Psychologist

A professional who studies and promotes the aspects of human behavior that contribute to well-being and happiness.

Coping Skills

Strategies and tactics utilized by individuals to deal with stress, challenges, or adversity in healthy and effective ways.

Biological Cause

An underlying physiological reason for a condition or disease, such as genetics or pathogen presence.