Which Audit Procedure Is Most Closely Related to Management's Assertion

question 57

Multiple Choice

Which audit procedure is most closely related to management's assertion regarding presentation and disclosure of liabilities?

• A) Tracing cash received from a bond issue to the accounting records.
• B) Confirmation with the bond trustee of amounts owed on a private placement of bonds.
• C) Reviewing the renewal of a note payable immediately after the balance sheet.
• D) Inspection of public records of lien balances.

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Definitions:

Public Relations

An approach of strategic communication that aims to establish positive relationships between organizations and their various publics.

Publicity

The public visibility or awareness for any product, service, or organization through media coverage.

Dry Cleaner

A business establishment that cleans clothes using solvents other than water, often utilizing chemical solvents.

Donations

Voluntary gifts or contributions, often financial, given to support a cause or organization.