Harvey,CPA Is Preparing an Audit Program for the Purpose of Ascertaining

question 78

Multiple Choice

Harvey,CPA is preparing an audit program for the purpose of ascertaining the occurrence of subsequent events that may require adjustment or disclosure essential to a fair presentation of the financial statements in conformity with generally accepted accounting principles.Which one of the following procedures would be least appropriate for this purpose?

• A) Confirm, as of the completion of fieldwork, accounts receivable that have increased significantly from the year-end date.
• B) Read the minutes of the board of directors.
• C) Inquire of management concerning events that may have occurred.
• D) Obtain a lawyer's letter as of the completion of fieldwork.

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Definitions:

Conservative Reaction

A response or movement aiming to preserve existing social, political, or economic orders, often opposing radical changes or innovations.

Classical Theory

In sociology, it refers to early frameworks for understanding society and its structures, emphasizing rationality, liberty, and equality.

Enlightenment Thinking

An intellectual movement in 18th-century Europe emphasizing reason, individualism, and skepticism of traditional authority.

Power Structure

The organization and distribution of power within a society, determining how decisions are made and who holds influence.