Which of the Following Procedures Would an Auditor Most Likely

question 997

Multiple Choice

Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?

• A) Recomputing a sample of large-dollar transactions occurring after year-end for arithmetic accuracy.
• B) Investigating changes in stockholders' equity occurring after year-end.
• C) Inquiring of the entity's legal counsel concerning litigation, claims, and assessments arising after yearend.
• D) Confirming bank accounts established after year-end.

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Definitions:

Motorcycle Seats

Components of a motorcycle designed to provide a rider and possibly a passenger with a comfortable place to sit while riding.

Supply Partnership

A collaborative agreement between a supplier and a buyer to ensure products or services are available at the right time, quality, and price.

Mutually Beneficial Objectives

Goals or intentions that provide advantages or positive outcomes for all parties involved in a particular situation or agreement.

Policies

Formal guidelines or rules set by an organization to regulate and guide decisions and actions in various scenarios.