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:

War of 1812

A conflict fought between the United States and Britain from 1812 to 1815, largely over issues of trade restrictions and the impressment of American sailors.

Federalist Party

An early American political party advocating for a strong federal government, and prominent in the late 18th to early 19th centuries.

Hartford Convention

An assembly of New England Federalists during the War of 1812, which discussed grievances against the U.S. government's war policies.

Popular Self-Government

The principle or practice where the people govern themselves directly or through elected representatives, forming the basis of democratic societies.