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 would be in the second category?

A) Examine subsequent-period sales and purchases transactions to determine whether the cutoff is accurate.
B) Correspond with lawyers.
C) Test the collectability of accounts receivable by reviewing subsequent period cash receipts.
D) Compare the subsequent period purchase price of inventory with the recorded cost as a test of lower-of-cost-or-market valuation.