When substantive procedures are performed before the balance sheet date 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 a comparison of the account balances at the two dates.
C) confirm all balances that were not confirmed at interim.
D) perform tests of reasonableness on all balances that were not confirmed at interim.

Question

Quizplus · Accepted Answer

When substantive procedures are performed before the balance sheet date, it is important for the auditor to ensure that the financial information remains accurate up to the balance sheet date. Performing a comparison of the account balances at the two dates helps the auditor identify any significant changes that may have occurred, ensuring the continued relevance and accuracy of the audit findings.

When Substantive Procedures Are Performed Before the Balance Sheet Date