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:

Customizing Production

The process of modifying and adapting the manufacturing process to meet specific customer requirements or preferences.

Executive Pay

Compensation awarded to top-level management and executives, including salaries, bonuses, stock options, and other financial rewards.

Public Scrutiny

The examination and critical observation of an individual, company, or process by the general public, often facilitated by media outlets.

Average Workers' Pay

The mean wage earned by employees in a specific job, industry, or region, calculated by dividing total wages by the number of workers.