If Auditors Conduct Substantive Procedures as of 10/31 for an Entity

question 37

Multiple Choice

If auditors conduct substantive procedures as of 10/31 for an entity with a 12/31 year-end:

• A)additional tests are seldom conducted for the remaining period.
• B)additional control tests are required in the remaining period.
• C)the entity's controls likely are ineffective.
• D)additional tests likely will be performed in the remaining period.

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Definitions:

Critical Decisions

Decisions that are highly important and can have significant consequences on the outcome of a situation or the future of an individual or organization.

Fire Department

A public or private organization that provides emergency firefighting and rescue services to protect people and property from fire and other hazards.

Reflective Thinkers

Individuals who critically analyze their beliefs and experiences to gain deeper understanding.

Certainty

The state of being sure or confident about something, often without doubt or question.