The Audit Procedures for the Subsequent Events Review Can Be

question 30

Multiple Choice

The audit procedures for the subsequent events review can be divided into two categories: 1) procedures normally integrated as a part of the verification of year-end account balances,and 2) those performed specifically for the purpose of discovering subsequent events.Which of the following procedures would be in the first category?

• A)Make inquiries of client regarding contingent liabilities.
• B)Obtain a letter of representation written by client.
• C)Examine subsequent period sales and purchases transactions to determine whether the cutoff is accurate.
• D)Review the minute book to determine the existence of any transaction related to year 1.

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Definitions:

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