The Audit Procedures for the Subsequent Events Review Can Be

question 6

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 purchase 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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Definitions:

N3 Sleep

The stage of deep sleep that is difficult to awaken from, associated with the repair and restoration of the body.

Natural Sleep Aid

Any substance or practice that naturally supports or enhances the quality and onset of sleep, such as melatonin or calming techniques.

Caffeine

A stimulant to the central nervous system, commonly found in coffee and tea, known to reduce fatigue and improve concentration.

Naps

Short periods of sleep, typically taken during the day, that can help improve mood, alertness, and performance.