The Auditor Would Be Least Likely to Perform Early Substantive

Multiple Choice

The auditor would be least likely to perform early substantive testing of account balances when:

A) a number of significant deviations from control policies and procedures were detected during tests of controls.
B) variance reports do not distinguish between price and quantity variances.
C) due to economic factors, fourth quarter activity this year is expected to be somewhat lower than prior year's.
D) the client uses a natural business year instead of the calendar year.
E) the taking of the client's inventory is performed at an early date.