Performing Substantive Procedures Prior to Year End, in the Absence

question 9

Multiple Choice

Performing substantive procedures prior to year end, in the absence of specific effective controls, may be acceptable when

• A) the auditor is able to conclude overall that the client's control environment is effective.
• B) the likelihood of errors or fraud is high.
• C) the likelihood of errors or fraud is low.
• D) both a and c

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Definitions:

Information

A document, prepared by the prosecutor and presented to the magistrate, which demonstrates that there is enough evidence to charge the defendant and bring him or her to trial.

Accounts

Records or statements of financial transactions, reflecting the financial activities of a person or organization.

Negotiable

A term describing an instrument, such as a check or bill of exchange, that can be transferred from one person to another in a manner that the holder in due course acquires a good title.

Handwriting

The act or skill of writing by hand; also refers to an individual's unique style of writing.