If auditors conduct substantive procedures as of 10/31 for an entity with a 12/31 year-end:
A)additional tests are seldom conducted for the remaining period.
B)additional control tests are required in the remaining period.
C)the entity's controls likely are ineffective.
D)additional tests likely will be performed in the remaining period.

Question

Quizplus · Accepted Answer

If auditors conduct substantive procedures as of 10/31, they are likely testing account balances as of that date. Therefore, additional tests are likely to be performed for the remaining period to ensure that there are no significant changes in account balances or other financial statement assertions.

If Auditors Conduct Substantive Procedures as of 10/31 for an Entity