Before Applying Substantive Procedures to the Details of Asset and Liability

question 42

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 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:

Experimental Conditions

The controlled environment and variables under which an experiment is conducted to test hypotheses and observe outcomes.

Ethical Concerns

Issues or situations that require a consideration of what is right and wrong in terms of conduct or morality.

American Psychological Association

A leading scientific and professional organization representing psychology in the United States, dedicated to advancing the creation, communication, and application of psychological knowledge to benefit society.

Deception

The act of misleading or falsely persuading others, often involving concealing the truth or providing incorrect information.