When substantive tests are performed before the balance sheet date, at a minimum the auditor should, at or after the balance sheet date: A) obtain a letter from management stating that no significant changes occurred in the account balances between the two dates. B) perform analytical procedures, including comparison of the account balances at the two dates. C) reconfirm all balances that were confirmed at interim. D) confirm all balances that were not confirmed at interim. E) perform tests of reasonableness on all balances that were not confirmed at interim.

Question

Quizplus · Accepted Answer

Performing analytical procedures, including comparing account balances at the two dates, helps the auditor understand any significant changes that may have occurred between the interim testing and the balance sheet date, ensuring the continued relevance of the earlier substantive tests.

When Substantive Tests Are Performed before the Balance Sheet Date