Before Applying Substantive Procedures to the Details of Asset and Liability

question 24

Multiple Choice

Before applying substantive procedures to the details of asset and liability accounts at an interim date, the auditor should:

• A)consider the ability of the auditor to perform appropriate substantive procedures to cover the remaining period.
• B)investigate significant fluctuations that have occurred in the asset and liability accounts since the previous balance sheet date.
• C)select only those accounts which can effectively be sampled during year-end audit work.
• D)consider the compliance tests that must be applied at the balance sheet date to extend the audit conclusions reached at the interim date.

---

Definitions:

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells through electrical and chemical signals.

Glial Cells

Non-neuronal cells in the central nervous system and the peripheral nervous system that do not produce electrical impulses but are essential for the support, protection, and nutrition of neurons.

Nerve Cells

Specialized cells that transmit electrical and chemical signals throughout the nervous system, enabling communication between the brain and the body.