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:

Financial Account

A component of the balance of payments that records transactions of financial assets between a country and the rest of the world.

Current Account Balance

The sum of a country's net income from foreign trade, net current transfers, and net income, often indicating the country's economic health.

Current Account

The section in a nation’s international balance of payments that records its exports and imports of goods and services, its net investment income, and its net transfers.

Investment Income

Income earned from the investment of capital in assets such as stocks, bonds, real estate, or other investment vehicles.