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:

Insulator

A material used to electrically isolate two conductive surfaces.

Valence Electrons

Electrons in the outermost shell of an atom that are significant in chemical bonding and reactions.

Voltage Change

A variation in the electrical potential difference between two points in a circuit, which can cause current to flow if a path is available.

Capacitor

A device made with two conductive plates separated by an insulator or dielectric.