The Auditor Has a Responsibility to Review Transactions and Activities

question 71

Multiple Choice

The auditor has a responsibility to review transactions and activities occurring after the year-end to determine whether anything occurred that might affect the valuation or disclosure of the statements being audited.The auditing procedures required to verify these transactions are commonly referred to as the review for

• A)contingent liabilities.
• B)subsequent year's transactions.
• C)late unusual occurrences.
• D)subsequent events.

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Definitions:

Appraiser

An appraiser is a professional who assesses and determines the market value of assets, such as real estate or personal property.

Used Cars

Pre-owned vehicles that have been owned by one or more retail owners, often sold through various outlets including franchise, independent car dealers, and private party sales.

Equilibrium

An equilibrium state in the market where demand equals supply, thereby stabilizing prices.

Lemons

A type of citrus fruit known for its sour taste, often used in cooking and beverages.