Multiple Choice
The audit procedures for the subsequent events review can be divided into two categories: (1) procedures 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 the first category?
A) Inquire of client regarding contingent liabilities.
B) Obtain a letter of representation written by client.
C) Subsequent period sales and purchases transactions are examined to determine whether the cutoff is accurate.
D) Review journals and ledgers of year 2 to determine the existence of any transactions related to year 1.
Correct Answer:
Verified
Correct Answer:
Verified
Q12: When dealing with contingencies,<br>A) all contingencies must
Q16: If, during the completion phase of the
Q31: An auditor has the responsibility to actively
Q35: Current professional auditing standards require the performance
Q36: A client has a calendar year-end. Listed
Q54: Auditors of public companies must obtain certain
Q57: An auditor must obtain written client representations
Q102: Subsequent events affecting the realization of assets
Q107: Auditors are required to communicate either orally
Q143: Which of the following statements regarding the