When the Auditor Has Completed the Tests of Details of Balances

question 64

Multiple Choice

When the auditor has completed the tests of details of balances and enters phase 4 of the audit process, she must still perform audit procedures for which of the following?

• A)Contingent liabilities and employee compensation
• B)Contingent liabilities and subsequent events
• C)Subsequent events and contractual commitments
• D)Subsequent events and unrecorded liabilities

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Definitions:

Problem-solving Ability

The capacity to find solutions for difficult or complex issues.

Literacy

The ability to read and write at a level adequate for communication or comprehension.

Economic Growth

The increase in the amount of goods and services produced by an economy over a period of time.

Declining Savings

A situation where the amount of money saved by individuals or entities decreases over time.