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:

Task-Oriented Behavior

A leadership approach focused primarily on the completion of tasks and the achievement of objectives.

Initiating Structure

The act of defining roles, assigning tasks, and establishing clear patterns of organization and communication within a team or organization.

Maintenance Behavior

Actions or activities aimed at preserving the current state of a system, organization, or relationship, ensuring its continuous operation and effectiveness.

Task-Oriented Behavior

Focuses on assigning tasks, clarifying responsibilities, and ensuring the team achieves its goals efficiently.