In Regard to Identifying and Evaluating Subsequent Events, AU 560

question 17

Multiple Choice

In regard to identifying and evaluating subsequent events, AU 560.12 specifies that the auditor inquires of management having responsibility for financial and accounting matters as to:

• A) any substantial contingent liabilities or commitments existing at the balance sheet date or report date.
• B) any significant changes in capital stock, long-term debt, or working capital to the date of inquiry.
• C) the current status of items previously accounted for on the basis of tentative, preliminary, or conclusive data.
• D) whether any unusual adjustments have been made since the report date.
• E) litigation, claims, and assessments.

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Definitions:

Personal Trait

An individual's characteristic pattern of thinking, feeling, or behavior.

Easing Conflict

Techniques or strategies used to reduce tension and resolve disagreements in a peaceful manner.

Technical Knowledge

Expertise or proficiency in specific fields of technology or industry.

Ethical Decision Making

The process of choosing actions that are consistent with ethical principles, reflecting considerations of fairness, justice, and respect for individuals.