Final answer:
The procedure an auditor would least likely perform before the balance sheet date is the confirmation of accounts receivable. Auditors focus on understanding the business, assessing risks, and testing controls prior to the balance sheet date, while confirmations are typically conducted closer to or at year-end to reflect the accurate financial position.
Step-by-step explanation:
An auditor would least likely perform the confirmation of accounts receivable before the balance sheet date. Auditing procedures are typically tailored to the timing of the tasks that can provide the highest quality evidence for the financial statements at the least risk of material misstatement.
Before the balance sheet date, auditors are more likely to focus on understanding the business and its environment, assessing the risk of material misstatement, and testing internal controls. The confirmation process is best performed at or close to the balance sheet date when the amounts are settled, and the balances are more reflective of the year-end position.
Common procedures before the balance sheet date include inquiries of management, analytical procedures, observation and inspection, and test of details of transactions.
It is crucial for auditors to plan their audit procedures in a manner that has both efficient and appropriate timing, which often means placing certain substantial testing activities closer to or after the year-end date. Such timing allows auditors to rely on the freshest data that aligns as closely as possible with the financial statements they are auditing.