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:

Acquaintances

Acquaintances are individuals one knows slightly but who are not close friends, often linked by occasional social interactions.

External Restraint Theory

A theory suggesting that external societal rules and norms prevent individuals from engaging in deviant or criminal behavior.

Subcultures Of Violence

Groups within a society that hold values and norms that accept, promote, or glorify violent behavior.

Aggravated Assault

is a physical attack on someone that results in serious bodily injury, often involving the use of a weapon or other means to increase harm.