Which of the Following Procedures Would an Auditor Most Likely

question 2

Multiple Choice

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

• A)Investigate changes in shareholders' equity occurring after year-end.
• B)Recalculate a sample of large-dollar transactions occurring after year-end for arithmetic accuracy.
• C)Confirm bank accounts established after year-end.
• D)Inquire of the entity's solicitor concerning litigation, claims and assessments arising after year-end.

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Definitions:

Document of Title

A legal document evidencing a person's legal right to control the disposal of goods, such as a bill of lading or warehouse receipt.

Bailees

Individuals or entities entrusted with temporary possession of someone else's property.

Revokes Acceptance

The legal act of canceling or withdrawing approval of a previously accepted offer or contract, often due to the discovery of a significant flaw or misrepresentation.

Consumers Choice

The decision-making process by which customers select from available products or services based on preferences and factors like price and quality.