The Audit Procedures for the Subsequent Events Review Can Be

question 100

Multiple Choice

The audit procedures for the subsequent events review can be divided into two categories: ? (1) procedures normally 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 second category?

• A)Correspond with attorneys.
• B)Test the collectability of accounts receivable by reviewing subsequent period cash receipts.
• C)Subsequent period sales and purchases transactions are examined to determine whether the cutoff is accurate.
• D)Compare the subsequent-period purchase price of inventory with the recorded cost as a test of lower of cost or market valuation.

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Definitions:

Scientific Management

A management theory developed by F.W. Taylor aiming to improve economic efficiency and labor productivity through systematic study and analysis of work processes.

Historical Development

The process of change over time within human societies, cultures, or civilizations, often studied to understand present conditions.

Sociologist

An expert or scholar in sociology, which is the study of society, patterns of social relationships, social interaction, and culture.

Economist

A professional or scholar who studies, teaches, or practices economics, focusing on the distribution, production, and consumption of goods and services.