The auditor would be least likely to perform early substantive tests of details of balances when:
A) a number of significant deviations from control policies and procedures were detected during tests of controls.
B) variance reports do not distinguish between price and quantity variances.
C) the client uses a financial business year instead of the calendar year.
D) the taking of the client's inventory is performed at an early date.

Question

Quizplus · Accepted Answer

When significant deviations from control policies and procedures are detected, it indicates a higher risk of material misstatement, making early substantive testing less effective and reliable.

The Auditor Would Be Least Likely to Perform Early Substantive