The Audit Procedures for the Subsequent Events Review Can Be

question 58

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 would be in the second category?

• A)Examine subsequent-period sales and purchases transactions to determine whether the cutoff is accurate.
• B)Correspond with lawyers.
• C)Test the collectability of accounts receivable by reviewing subsequent period cash receipts.
• D)Compare the subsequent period purchase price of inventory with the recorded cost as a test of lower-of-cost-or-market valuation.

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Definitions:

Hemorrhoids

Swollen and inflamed veins in the rectum and anus that can cause discomfort and bleeding.

Helicobacter Pylori

A type of bacteria that infects the stomach lining and is the main cause of ulcers and can contribute to the development of gastric cancer.

Ulcers

Open sores that develop on the skin, mucous membranes, or lining of the stomach, often resulting from infection or inflammation.

Obesity

A medical condition characterized by excessive body fat accumulation, which poses a risk to health, including increased chances of heart disease, diabetes, and high blood pressure.