Performing Substantive Procedurprior to Year-End, in the Absence of Specific

question 48

Multiple Choice

Performing substantive procedurprior 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:

Truthful

Being honest and not containing or telling any lies.

Superiority Attitude

A mindset or disposition in which an individual believes they are superior to others, often leading to dismissive or derogatory behaviors.

Resentment

A feeling of anger or displeasure about someone or something unfair.

Pros And Cons

The advantages and disadvantages of a specific decision, action, or situation.