As Part of the Wrap-Up Procedures, Mary Ellen Dillon Reviews

question 16

Multiple Choice

As part of the wrap-up procedures, Mary Ellen Dillon reviews the minutes of the Board of Directors for a client. During her review, she discovers that a major acquisition is planned in the coming months. This planned acquisition should:

• A) be disclosed in the footnotes to the financial statements.
• B) be disclosed in an explanatory paragraph of the audit report.
• C) be audited by the audit firm as part of its wrap-up work.
• D) None of the above.

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Definitions:

Ineffective

Lacking the ability or success in producing a desired or intended result.

Time Efficient

Making the best possible use of time to ensure task completion or goal achievement with minimal wasted time.

Cultural Heritage

The legacy of physical artifacts and intangible attributes of a group or society inherited from past generations.

Sociohistorical Heritage

The social and historical background or traditions that influence a person or community.