Which of the Following Procedures Would an Auditor Most Likely

question 141

Multiple Choice

Which of the following procedures would an auditor most likely perform in obtaining evidence about subsequent events?

• A) Examine a sample of transactions that occurred since the year-end to verify the effectiveness of computer controls.
• B) Inquire of management whether there have been significant changes in working capital since the year-end.
• C) Recompute depreciation charges for plant assets sold for substantial gains since the year-end.
• D) Reperform the tests of controls that indicated significant deficiencies in the operation of internal control.

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Definitions:

FIFO Method

First-In, First-Out, an inventory valuation method where the oldest inventory items are sold or used first.