Substantive tests of long-term debt balances may be performed either before or after the balance sheet date.

Question

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Substantive tests of long-term debt balances can be performed either before or after the balance sheet date because auditors can examine subsequent transactions and adjustments to verify the accuracy and completeness of the long-term debt balances reported as of the balance sheet date.

Substantive Tests of Long-Term Debt Balances May Be Performed Either