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:

Congressional Committee

A subgroup within the United States Congress tasked with specific duties, including legislation review, policy oversight, and investigations.

Executive Agency

A governmental body under the direct authority of the executive branch, responsible for administering specific legislation.

Interest Group

An organization or group that seeks to influence public policy and decision-making to benefit their particular interests or causes.

Deposit

A deposit is a sum of money placed in a financial institution for safekeeping, which can earn interest over time, commonly used in banking for savings or checking accounts.