Performing substantive procedurprior 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 is acceptable when the control environment is effective (A) and the likelihood of errors or fraud is low (C), as this reduces the risk of material misstatement.

Performing Substantive Procedurprior to Year-End, in the Absence of Specific