Which of the Following Substantive Procedures Should Auditors Ordinarily Perform

question 59

Multiple Choice

Which of the following substantive procedures should auditors ordinarily perform regarding subsequent events?

• A) Compare the latest available interim financial statements with the financial statements being audited.
• B) Send second requests to the client's customers who failed to respond to initial accounts receivable confirmation requests.
• C) Communicate material weaknesses in internal control to the client's audit committee.
• D) Review the cutoff bank statements for several months after the date of the financial statements.

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Definitions:

Vouchers Payable

Liabilities or accounts payable that are supported by a voucher evidencing the goods or services received.

Unpaid Vouchers

Records of amounts owed for goods or services received but not yet paid for.

Voucher

A document that serves as evidence for a transaction and authorizes a payment.

Purchase Requisition

An internal document used by an organization to request permission for a purchase before initiating the actual procurement process.