Before applying substantive procedures to the details of accounts at an interim date (a date prior to the balance sheet date),an auditor should
A) Assess control risk at high for the assertions embodied in the accounts selected for interim testing.
B) Determine that the accounts selected for interim testing are not material to the financial statements taken as a whole.
C) Consider the availability of information at a later date that will be necessary for the auditor's procedures (e.g., electronic data).
D) Obtain written representations from management that all financial records and related data will be made available.

Question

Quizplus · Accepted Answer

Before applying substantive procedures to the details of accounts at an interim date, the auditor should consider the availability of information at a later date that will be necessary for the auditor's procedures. This is because substantive procedures may need to be repeated at the balance sheet date, and the availability of information could affect the nature, timing, and extent of procedures performed at the interim date. Options A and B are incorrect because even if control risk is assessed as high and the accounts selected for interim testing are not material, substantive procedures may still be necessary. Option D is incorrect because obtaining written representations from management does not address the issue of availability of information at a later date.

Before Applying Substantive Procedures to the Details of Accounts at an Interim