As Part of the Review for Subsequent Events,the Auditor Will

question 44

Multiple Choice

As part of the review for subsequent events,the auditor will review financial statements prepared after the balance sheet date.The purpose of this review is to examine changes after year end and to look for

• A)errors in capital versus maintenance charge allocations that occurred after the year end.
• B)subsequent payments to accounts payable and long term debt.
• C)subsequent receipts in accounts receivable,especially for the larger customers.
• D)changes in the business relative to results for the same period in the year under audit.

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Definitions:

Electronic Version

A digital format of a document, book, or any piece of information, accessible through electronic devices.

Subscription Service

A pricing strategy where clients are charged a consistent fee periodically to use a product or service.

Escrow Company

A neutral third-party entity that holds assets, including money, property, and documents, on behalf of other parties during the completion of a transaction.

Financing Statement

A document filed to give public notice of a secured transaction, indicating an interest in the assets of a debtor.