Which of the Following Procedures Should an Auditor Generally Perform

question 59

Multiple Choice

Which of the following procedures should an auditor generally perform regarding subsequent events?

• A)Compare the latest available interim financial statements issued after year-end with the financial statements being audited.
• B)Send second requests to the entity's customers who failed to respond to initial accounts receivable confirmation requests.
• C)Communicate material weaknesses in internal controls to those charged with governance.
• D)Review the cutoff bank statements for several months after year-end.

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Definitions:

Cocktail Party Effect

The ability of the brain to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as when a person can focus on a single conversation in a noisy room.

Inattentional Blindness

A psychological lack of attention that is not associated with any vision defects or deficits, where individuals fail to perceive an unexpected stimulus in plain sight.

Change Blindness

The phenomenon where observers fail to notice significant changes in their visual environment.

Blindsight

A condition in which a person can respond to visual stimuli without consciously perceiving them.