When may audit procedures be performed? I - on the balance sheet date. II - prior to the balance sheet date. III - subsequent to the balance sheet date.
A)I only.
B)I and III only.
C)II only.
D)I,II,and III.

Question

Quizplus · Accepted Answer

Audit procedures may be performed on the balance sheet date (I) to obtain sufficient evidence regarding the existence and valuation of assets and liabilities as of that date. They may also be performed prior to the balance sheet date (II) to obtain evidence about transactions, events, and conditions that occurred during the period under audit. Finally, audit procedures may be performed subsequent to the balance sheet date (III) to obtain evidence about events that occurred after the balance sheet date but that may require adjustment or disclosure in the financial statements. Thus, all three options are possible depending on the auditors' assessment of risk and the audit objectives.

When May Audit Procedures Be Performed? I - on the Balance