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:

Palindromic Sequence

A sequence of DNA or RNA that is the same when read forwards or backwards.

DNA Sequence

The precise order of nucleotides within a DNA molecule, which determines the genetic information carried by that molecule.

Genomic Library

A collection of DNA fragments that represent the entire genome of an organism, stored in vectors and maintained in host cells for study.

Spliced

The process of removing introns and joining exons together in a pre-mRNA molecule to form a mature mRNA strand.