In: Accounting
when is it acceptable for the auditor to perform tests of controls and substantive tests of transactions for sales and cash receipts at an interim date?
It is often acceptable to perform tests of controls and substantive tests of transactions at an interim date. The auditor may decide it is necessary to test the untested period at year end.
It is acceptable to perform tests of controls and substantive tests of transactions for sales and cash receipts at an interim date and not perform additional tests of the system at year end under the following circumstances:-
Thus in all the above mentioned circumstances, it is acceptable for the auditor to perform tests of controls and substantive tests of transactions for sales and cash receipts at an interim date.