An Auditor Plans to Apply Substantive Tests to the Details

Multiple Choice

An auditor plans to apply substantive tests to the details of asset and liability accounts as of an interim date rather than as of the balance sheet date. The auditor should be aware that this practice

A) Eliminates the use of certain statistical sampling methods that would otherwise be available.
B) Presumes that the auditor will reperform the tests as of the balance sheet date.
C) Should be especially considered when there are rapidly changing economic conditions.
D) Potentially increases the risk that errors which exist at the balance sheet date will not be detected.