Before Applying Substantive Procedures to the Details of Accounts at an Interim

question 2

Multiple Choice

Before applying substantive procedures to the details of accounts at an interim date (a date prior to the balance sheet date) , an auditor should:

• A)assess control risk at high 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 the availability of information at a later date that will be necessary for the auditor's procedures (e.g., electronic data).
• D)obtain written representations from management that all financial records and related data will be made available.

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Definitions:

Respond to Stress

The process of reacting to and coping with stress, which can vary widely among individuals.

Kelly

George A. Kelly, a psychologist known for his personal construct theory, which posits that individuals continually test predictions about their environment and experiences.

Predict and Control

Terms often associated with the goals of scientific research, where predictability refers to the ability to foresee outcomes, and control involves the manipulation of variables to influence results.

Understand the World

Refers to the cognitive process of comprehending, interpreting, and making sense of the complex reality around us.