Which of the Following Procedures Would an Auditor Most Likely

question 57

Multiple Choice

Which of the following procedures would an auditor most likely perform to obtain evidence about an entity's subsequent events?

• A)Reconcile bank activity for the month after the balance sheet date with cash activity reflected in the accounting records.
• B)Ask legal counsel about any developments relating to litigation, claims, or assessments against the company.
• C)Review the treasurer's monthly reports on temporary investments owned, purchased, and sold.
• D)Examine on a test basis the purchase invoices and receiving reports for several days after the inventory date.

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Definitions:

Cost

The expenditure of resources, such as money, time, or effort, incurred in the pursuit or acquisition of goods, services, or outcomes.

Benefits

Advantages or positive effects that are derived from a particular action or policy.

Rational Autonomy

The capability of individuals to make reasoned, self-governed choices free from external constraints or coercion.

Bodily Integrity

The inviolability of the physical body and the right to control one’s own body free of external interference.