Which of the Following Procedures Should an Auditor Generally Perform

question 707

Multiple Choice

Which of the following procedures should an auditor generally perform regarding subsequent events?

• A) Compare the latest available interim financial statements with the financial statements being audited.
• B) Send second requests to the client's customers who failed to respond to initial accounts receivable confirmation requests.
• C) Communicate material weaknesses in the internal control structure to those charged with governance.
• D) Review the cut-off bank statements for several months after the year-end.

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Definitions:

Cognitive Interpretations

The mental processes involved in perceiving, recognizing, and understanding thoughts, behaviors, and events, often influencing how individuals react to their environment.

Motivation

The psychological process that stimulates and directs goal-oriented behaviors, stemming from desires, needs, or rewards.

Orbitofrontal Cortex

The orbitofrontal cortex is a region of the brain involved in the cognitive process of decision-making, processing of rewards and punishments, and emotion regulation.

Amygdala

A structure within the brain's temporal lobe associated with experiencing emotions, such as fear and pleasure, and forming emotional memories.