In Regard to Identifying and Evaluating Subsequent Events, ASA560

question 35

Multiple Choice

In regard to identifying and evaluating subsequent events, ASA560.10 (ISA 560) specifies that the auditor make inquiries of management. Which of the following is not an example of a specific inquiry?

• A) whether new commitments, borrowings or guarantees have been entered into.
• B) whether sales of assets have occurred or are planned.
• C) whether any unusual accounting adjustments are being contemplated.
• D) the current status of items previously accounted for on the basis of preliminary or inconclusive data.

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Definitions:

Cervix

The lower part of the uterus in the female reproductive system, connecting the uterine cavity with the vagina.

Lanugo

Soft, fine hair that covers the fetus during early development, which is usually shed before birth.

Vernix Caseosa

A white creamy substance that covers the skin of the fetus during pregnancy, providing protection.

Fetoscopy

A medical procedure involving the insertion of a fetoscope to visually examine a fetus inside the uterus.