In practice, early substantive testing of account balances is done only when:
A) the client has a calendar year end.
B) the client has reporting requirements under the Securities Acts.
C) evidence indicates effective control policies and procedures.
D) the primarily substantive approach is taken.
E) internal controls are weak.

Question

Quizplus · Accepted Answer

Early substantive testing is done when there is evidence of effective control policies and procedures, as this reduces the risk of material misstatement and allows auditors to rely on controls, enabling earlier testing.

In Practice, Early Substantive Testing of Account Balances Is Done