Solution-When substantive tests are performed before

When substantive tests are performed before balance sheet

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Reference no: EM132756865

Problem 1: A major customer of an audit client suffers a fire just prior to completion of year-end fieldwork. The audit client believes that this event could have a significant direct effect on the financial statements. The auditor should:

a. Advise the management to disclose the event in notes to the financial statements

b. Disclose the event in the auditor's report

c. Withhold submission of the auditor's report until the extent of the direct effect on the financial statements is known

d. Advise the management to adjust the financial statements

Problem 2: When substantive tests are performed before the balance sheet date, at a minimum the auditors should, at or after the balance sheet date:

a. Changes occurred in the account balances between the two dates

b. Perform analytical procedures, including comparison of the account balances at the dates

c. Reconfirm all balances that were conformed at interim date

d. Confirm all balances that were not confirmed at interim date

Reference no: EM132756865

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When substantive tests are performed before balance sheet

Reference no: EM132756865

Reference no: EM132756865

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