Performing substantive tests of balances before the year-end is only advisable if the internal controls have already been assessed as ineffective.

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Performing substantive tests of balances before the year-end is advisable as it can help identify errors and misstatements in the financial statements. However, even if the internal controls have been assessed as effective, it is still important to perform substantive tests to obtain sufficient evidence regarding the balances.

Performing Substantive Tests of Balances Before the Year-End Is Only