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.

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Definitions:

Tuning Forks

Musical instruments which vibrate at a specific pitch when struck, used for tuning musical instruments or for therapeutic purposes.

O Proposition

In traditional logic, a proposition that states that some members of a category do not share a specific attribute.

Enthymeme

An enthymeme is a rhetorical syllogism commonly used in persuasive speech, where one of the premises is not explicitly stated but is implied, making the argument rely on the audience's recognition of the unstated premise.

Conclusion

The final part of something, typically a process or discussion, where the main points or decisions are summarized or determined.