Which of the Following Procedures Would an Auditor Most Likely

question 76

Multiple Choice

Which of the following procedures would an auditor most likely perform to obtain evidence about an entity's subsequent events?

• A) Reconcile bank activity for the month after the balance sheet date with cash activity reflected in the accounting records.
• B) Obtain a letter from the entity's attorney describing any pending litigation, unasserted claims, and loss contingencies.
• C) Review the treasurer's monthly reports on temporary investments owned, purchased, and sold.
• D) Examine on a test basis the purchase invoices and receiving reports for several days after the inventory date.

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Definitions:

Science And Math

Fields of study focused on understanding the natural world through observation and experimentation, and applying mathematical principles to quantify relationships, respectively.

Schools

Institutions for educating children, often at the primary and secondary level, but also inclusive of tertiary education.

Labor-Market Discrimination

The practice of unfairly treating individuals differently in employment decisions based on characteristics unrelated to their job performance, such as race, gender, or age.

Higher Salary

An increased amount of money earned by an employee for their work, often due to promotions, skill upgrades, or market demand for their role.