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 one of the following procedures is in the first category?
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 the client.
C) Examine subsequent period sales and purchases transactions to determine whether the cutoff is accurate.
D) Inquire of the client regarding contingent liabilities.
Correct Answer:
Verified
Correct Answer:
Verified
Q17: A letter of representation written by the
Q18: No disclosure in the financial statement is
Q19: Current auditing standards require the performance of
Q20: Distinguish between a 'management representation letter' and
Q21: If the auditor concludes that it is
Q23: Subsequent events which require adjustment to the
Q24: What are the five main aspects of
Q25: The subsequent discovery of facts requiring the
Q26: Which one of the following is NOT
Q27: Adjustment of the financial statement may be