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 purchase 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
Q1: An example of a presentation and disclosure-related
Q2: If an auditor discovers that previously issued
Q3: Financial statement disclosure is required if the
Q4: An auditor's decision concerning whether or not
Q5: Many of the audit procedures for finding
Q7: A lawsuit has been filed but not
Q8: If the auditor concludes that there are
Q9: In connection with the annual audit, which
Q10: Client representation letters are required by professional
Q11: Inquiries of management regarding the possibility of