Harvey, CPA, Is Preparing an Audit Program for the Purpose

question 5

Multiple Choice

Harvey, CPA, is preparing an audit program for the purpose of ascertaining the occurrence of subsequent events that may require adjustment or disclosure essential to a fair presentation of the financial statements in conformity with applicable accounting standards.Which one of the following procedures would be LEAST appropriate for this purpose?

• A) Confirm, as of the completion of fieldwork, accounts receivable that have increased significantly from the year-end date.
• B) Inquire of management concerning events that may have occurred.
• C) Read the minutes of the board of directors meetings.
• D) Obtain a legal counsel's letter as of the completion of fieldwork.

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Definitions:

Cognitive Dissonance

A psychological phenomenon where there is a conflict between one's beliefs and behaviors, causing discomfort which individuals are motivated to reduce.

Emotional State

An emotional state is the temporary condition of experiencing specific emotions, which can influence cognition, behavior, and interpersonal interactions.

Beliefs

Beliefs or assurances in the existence or truth of something, especially without evidence.

Hopelessness

A feeling or state in which an individual perceives their situation as bleak or insurmountable, leading to despair and a loss of motivation.