Performing substantive procedures prior to year end, in the absence of specific effective controls, may be acceptable when
A) the auditor is able to conclude overall that the client's control environment is effective.
B) the likelihood of errors or fraud is high.
C) the likelihood of errors or fraud is low.
D) both a and c

Question

Quizplus · Accepted Answer

Performing substantive procedures prior to year end can be acceptable when the auditor concludes that the client's control environment is effective (indicating a lower risk of material misstatement) and when the likelihood of errors or fraud is low. Both conditions suggest that earlier testing may not compromise the quality of the audit evidence obtained.

Performing Substantive Procedures Prior to Year End, in the Absence