Question

Procedures used to allow auditors to extend their conclusions to the end of the year under audit are referred to as?

1) Analytical procedures
2) Interim testing
3) Roll-forward work
4) Tests of controls

Answer 1

Roll-forward work is the audit procedure used to update interim conclusions to the year-end, ensuring the auditor's conclusions remain valid for the complete period under review.

Step-by-step explanation:

Procedures used to allow auditors to extend their conclusions to the end of the year under audit are referred to as roll-forward work. This process involves taking audit results from an interim period and updating those conclusions to a subsequent date, often year-end. It ensures that the auditors' conclusions remain valid for the entire period under review.

Roll-forward work is essential since it confirms that transactions and balances from the interim period have been properly rolled forward and that there have been no significant changes that might affect the final audit opinion. This may involve performing additional analytical procedures, tests of controls, or substantive tests. As such, roll-forward work is critical for auditors in gathering sufficient appropriate audit evidence to support their opinion.