Investment transactions rarely present cut-off problems, so the auditor may perform
many substantive procedures before or after the end of the reporting period. Income
statement account balances relating to investments are usually verified at the same time.

Question

Quizplus · Accepted Answer

Investment transactions are typically settled in a timely manner, so cut-off problems are rare. Therefore, substantive procedures can be performed both before and after the end of the reporting period. Additionally, income statement accounts related to investments can be verified at the same time.

Investment Transactions Rarely Present Cut-Off Problems, So the Auditor May