Which One of the Following Is Not an Example of an Additional

question 2

Multiple Choice

Which one of the following is not an example of an additional procedure that typically relates to the discovery of subsequent events?

• A)Partner review of all workpapers.
• B)Reading interim financial statements and comparing them to the audited statements to note significant changes.
• C)Reading the board of directors' minutes for all meetings during the year and after year-end through the end of field work.
• D)Management inquiry.

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Definitions:

IRR

Internal Rate of Return, a financial metric used to estimate the profitability of potential investments by calculating the interest rate at which the net present value of all cash flows (both positive and negative) from a particular project equals zero.

Required Rate

The minimum return needed from an investment to compensate for its risk.

Annual Cash Flows

The total amount of cash that a company receives and spends within one year.