Which of the Following Procedures Would a CPA Most Likely

question 331

Multiple Choice

Which of the following procedures would a CPA most likely perform in the planning stage of a financial statement audit?

• A) Obtain representations from management regarding the availability of all financial records.
• B) Communicate with those charged with governance concerning the prior year's audit adjustments.
• C) Make inquiries of the client's attorney regarding pending and threatened litigation and assessments.
• D) Compare recorded financial information with anticipated results from budgets and forecasts.

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Definitions:

Estimated Payments

Periodic payments on expected taxes for the current year, typically paid quarterly by self-employed individuals and others with income not subject to withholding.

$1,250

A specific monetary amount, possibly denoting a threshold, tax credit value, or an investment minimum.

Qualifying Widow(er)

A tax filing status allowing a surviving spouse to use joint tax rates for up to two years after the spouse's death, under certain conditions.

Taxpayer Remarry

When a taxpayer remarries, it changes their tax filing status and can affect determinations for deductions, credits, and tax liability.