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:

Tributaries

Smaller rivers or streams that flow into a larger river or lake, contributing to its overall water volume.

Sediment

Particulate organic and inorganic material that settles at the bottom of a liquid, often transported by water, wind, or ice.

Discharge

The flow rate of water from a given source, such as a river or aquifer, typically measured in volume per unit time.

Low-Gradient Stream

A stream with a gentle slope that typically has slower water velocity and can form wide meanders, floodplains, and deposits of sediments along its course.