Which of the Following Procedures Would an Auditor Ordinarily Perform

question 33

Multiple Choice

Which of the following procedures would an auditor ordinarily perform during the review of subsequent events?

• A) An analysis of related party transactions for the discovery of possible irregularities.
• B) A review of the cut-off bank statements for the period after the year-end.
• C) An inquiry of the entity's legal counsel concerning litigation.
• D) An investigation of material weaknesses in internal control previously communicated to the entity.

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Definitions:

Fixed Tariff

A preset tax or duty to be paid on particular imports or exports, which remains unchanged over a period regardless of economic conditions.

Ad Valorem Tariff

A type of tax calculated as a percentage of the value of the goods being imported or exported.