Which of the Following Procedures Ordinarily Should Be Applied When

question 16

Multiple Choice

Which of the following procedures ordinarily should be applied when an independent accountant conducts a review of interim financial information of a publicly held entity?

• A)Verify changes in key account balances.
• B)Read the minutes of the board of directors' meetings.
• C)Inspect the open purchase order file.
• D)Perform cut-off tests for cash receipts and disbursements.

---

Definitions:

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Weekly Salaries

A compensation structure where employees are paid a set amount on a weekly basis, regardless of the hours worked.

Adjusting Entry

A journal entry made at the end of the accounting period to allocate income and expenditure to the correct period.

Accounting Period

denotes the specific period of time covered by financial statements, typically a year or a quarter.