The Auditor Has a Responsibility to Review Transactions and Activities

question 78

Multiple Choice

The auditor has a responsibility to review transactions and activities occurring after the balance sheet date to determine whether anything occurred that might affect the statements being audited. The 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:

Test Participants

Individuals who take part in a test or experiment, often to provide data for research or product development.

Post-test Interviews

Interviews conducted after an experimental test to gather participants' feedback and understanding about the test.

Guided Evaluation

A structured method of assessing something with the assistance or direction of a guide or set of criteria.

Prototype

An early sample, model, or release of a product built to test a concept or process.