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.

---

Definitions:

Focus Group

A qualitative research method involving guided discussions with a selected group of individuals to gain insights into their perceptions, opinions, and attitudes.

Behavioral Targeting

A marketing strategy that uses consumer activity data to customize the advertising content they are shown, enhancing relevance and effectiveness.

Cookies

Small data files stored on a user's computer by websites to remember preferences and track online behavior, often used for targeted advertising and improving user experience.

Browsers

Software applications used to access and navigate the internet.