Before Applying Substantive Procedures to the Details of Asset and Liability

question 54

Multiple Choice

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

• A) Assess the difficulty in controlling achieved audit risk for the remainder of the 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:

Developmental Variable

A factor that undergoes change over time and influences the growth or development of an individual or system.

Optimal Wellness

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity, where an individual or group achieves a balance of health habits, mental stability, and social happiness.

System Variables

Components or factors within a system that can change and affect the system's behavior and outcomes.

Client Variables

Factors that can influence the behavior, experiences, and outcomes for clients receiving services, including their background, personality, and current situation.