Which of the Following Substantive Procedures Would Auditors Most Likely

question 73

Multiple Choice

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

• A) Recompute a sample of large-dollar transactions occurring after cutoff for arithmetic accuracy.
• B) Investigate changes in shareholders' equity occurring after the date of the financial statements.
• C) Send confirmations to vendors with whom the client normally does business but for which no balance in accounts payable is noted.
• D) Confirm bank accounts established after the date of the financial statements.

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Definitions:

Responsiveness

The ability of an organism or a system to react to changes in its environment or within itself.

Shiver

An involuntary response to cold involving rapid, rhythmic muscle contractions to generate heat.

Freezing Rain

Rain that falls as liquid but freezes upon contact with cold surfaces, forming a coating of ice.

Operations Function

Operations function involves the management of processes and systems within an organization that produce goods or services efficiently and effectively.