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:

Empathy Gap

The inability to accurately predict one's own or others' emotional states and behaviors in different situations, usually underestimating the influence of emotions.

Tend and Befriend

A theory that suggests in times of stress, individuals, particularly females, will seek social alliances and support, rather than isolating themselves or fighting.

Stressful Situations

Scenarios that cause psychological or physical tension or strain.

Social Networks

Platforms or structures made up of individuals or organizations that are connected through various social relationships, like friendships or professional ties.