In short
When substantive procedures are performed at an interim date, the auditor performs further procedures for the remaining period to year-end, so the conclusions extend to the balance sheet date.
Key takeaways
- They include comparing interim and year-end balances, investigating unusual changes and testing significant transactions in between.
- For higher risks, interim testing may not be appropriate at all.
- Effective controls over the remaining period make interim testing more reliable.
Where it's tested
AUD: Responding to Assessed Risks — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
If the auditor performs tests of controls at an interim date, what is required regarding the remaining period?