The Audit Procedures for the Subsequent Events Review Can Be

Multiple Choice

The audit procedures for the subsequent events review can be divided into two categories: (1) procedures normally integrated as a part of the verification of year- end account balances and (2) those performed specifically for the purpose of discovering subsequent events. Which of the following procedures is in category 1?

A) Review journals and ledgers of year 2 to determine the existence of any transaction related to year 1.
B) Obtain a management representation letter written by client.
C) Inquire of client regarding contingent liabilities.
D) Examine subsequent period sales and purchases transactions to determine whether the cutoff is accurate.