Which of the Following Audit Procedures Would Be Least Likely

question 16

Multiple Choice

Which of the following audit procedures would be least likely to disclose the existence of related party transactions of a client during the period under audit?

• A)Reading "conflict-of-interest" statements obtained by the client from its management.
• B)Scanning accounting records for large transactions at or just prior to the end of the period under audit.
• C)Reading minutes of the Board of Directors meetings for authorization or discussion of material transactions.
• D)Confirming purchases and sales transactions with the vendors and/or customers involved.

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Definitions:

Standards Of Conduct

Guidelines or rules designed to direct the behavior and decision-making of members within an organization or profession.

Actions

A term that might refer to the various steps or measures taken by an individual or organization; however, in a specific accounting or financial context, it's too vague without further qualification.

Proprietorship

A business owned and operated by a single individual, where the owner and the business are legally considered the same entity.

Neighborhood Barber Shop

A locally-operated business that provides hair cutting and grooming services primarily for male clients in a specified area.