Which of the Following Procedures Should an Auditor Generally Perform

question 37

Multiple Choice

Which of the following procedures should an auditor generally perform regarding subsequent events?

• A)Compare the latest available interim financial statements with the financial statements being reported on.
• B)Send second requests to the client's customers who failed to respond to initial accounts receivable confirmation requests.
• C)Communicate material weaknesses in the internal control system to the client's audit committee.
• D)Review the cut-off bank statements for several months after the year end.

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Definitions:

Employees

Individuals who are hired by a business or organization to work under a contract of employment and get paid in return.

Mean Salary

The average amount of money earned by employees in a particular job or industry, calculated by summing all salaries and dividing by the number of employees.

Chi-Squared Distribution

A probability distribution that is widely used in inferential statistics for hypothesis testing and estimating variances.

Left-Tailed Area

The part of a distribution graph that appears to the left of a specified value, often related to hypothesis testing in statistics.