The Audit Procedures for the Subsequent Events Review Can Be

question 34

Multiple Choice

The audit procedures for the subsequent events review can be divided into two categories: (1) procedures 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 is in the first category?

• A)Inquire of client regarding contingent liabilities.
• B)Obtain a letter of representation written by client.
• C)Subsequent period sales and purchases transactions are examined to determine whether the cutoff is accurate.
• D)Review journals and ledgers of year 2 to determine the existence of any transactions related to year 1.

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