The Audit Procedures for the Subsequent Events Review Can Be

question 34

Multiple Choice

The audit procedures for the subsequent events review can be divided into two categories: (1) procedures integrated as a part of the verification of year-end account balances,and (2) those performed specifically for the purpose of discovering subsequent events.Which of the following procedures is in the first category?

• A)Inquire of client regarding contingent liabilities.
• B)Obtain a letter of representation written by client.
• C)Subsequent period sales and purchases transactions are examined to determine whether the cutoff is accurate.
• D)Review journals and ledgers of year 2 to determine the existence of any transactions related to year 1.

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Definitions:

Depression

A disorder in mental health defined by ongoing feelings of sadness or a lack of enthusiasm for activities, significantly hindering day-to-day life.

Depressing Memories

Recollections of past events that evoke feelings of sadness and despondency.

Major Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Sleep Abnormalities

Disorders or irregularities in sleep patterns, including issues such as insomnia, sleep apnea, and narcolepsy.