The Auditor Has a Responsibility to Review Transactions and Activities

question 3

Multiple Choice

The auditor has a responsibility to review transactions and activities occurring after the balance sheet date to determine whether anything occurred that might affect the valuation or disclosure of the statements being audited. The auditing procedures required to verify these transactions are commonly referred to as the review for:

• A) contingent liabilities.
• B) subsequent years' transactions.
• C) subsequent events.
• D) late unusual occurrences.

---

Definitions:

Cyber Liability Insurance

Insurance coverage designed to protect businesses from internet-based risks, such as data breaches or cyber-attacks.

Data Analytic

The process of examining datasets to draw conclusions about the information they contain, often with the aid of specialized systems and software.

Virtual Storage

A method of data storage that provides users with the illusion of having a single, contiguous storage space, regardless of the physical storage structure.

Violation

The act of breaking or failing to comply with a law, agreement, or code of conduct.