The Audit Procedures for the Subsequent Events Review Can Be

question 94

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 is in category 1?

• 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 client.
• C) Inquire of client regarding contingent liabilities.
• D) Examine subsequent period sales and purchases transactions to determine whether the cutoff is accurate.

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Definitions:

Farmers' Alliance

A broad mass movement in the rural United States during the late 19th century, which sought to improve the economic conditions for farmers through the creation of cooperatives and political advocacy.

Federal Troops

Military forces deployed by the federal government of a nation, often used to denote soldiers sent to enforce laws within the country, including during periods of civil unrest.

Using Force

The application of physical power or violence to achieve an objective, often associated with military action or law enforcement tactics.