Which of the Following Procedures Would Auditors Most Likely Perform

question 29

Multiple Choice

Which of the following procedures would auditors most likely perform in obtaining evidence about subsequent events?

• A)Determine that changes in employee pay rates after year end were properly authorized.
• B)Recompute depreciation charges for plant assets sold after year end.
• C)Inquire about payroll checks that were recorded before year end but cashed after year end.
• D)Investigate changes in long-term debt occurring after year end.

---

Definitions:

Long Run

In economics, refers to a period in which all factors of production and costs are variable, allowing for complete adjustment to changes.

Economic Profit

The discrepancy between the overall income and the sum of all expenses, encompassing both direct and indirect costs.

Monopolistically Competitive

A market scenario where multiple firms compete on product differentiation, price, and quality, while maintaining some degree of market power.

Product Demand

The desire and willingness to purchase a specific product, quantified by the quantity consumers are ready to buy at various prices.