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 for an entity with a 12/31 year-end, additional tests are likely to be performed in the remaining period. This is because the audit period is not yet complete, and there may be events or transactions that occur between 10/31 and 12/31 that could affect the financial statements. Therefore, auditors should perform additional procedures to ensure that the financial statements are fairly presented for the entire year.

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