When the Auditor Has Completed the Tests of Details of Balances

question 56

Multiple Choice

When the auditor has completed the tests of details of balances and enters phase IV of the audit process, she or he 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:

Heuristic

A problem-solving approach that employs a practical method or various shortcuts to produce solutions that may not be perfect but are sufficient for the immediate goals.

Decisive

Having the power or quality of settling an issue or producing a definite result.

Absolute Pitch

The ability to identify or reproduce a musical note without any external reference.

Savant Syndrome

A rare condition where someone with significant mental disabilities demonstrates certain abilities far in excess of average.