Which of the Following Is Not a Procedure That Auditors

question 26

Multiple Choice

Which of the following is not a procedure that auditors typically perform to search for significant events during the period after year-end but prior to the audit report date?

• A) Review minutes of board of directors' meeting.
• B) Review the latest available interim financial statements.
• C) Inquire about any unusual adjustments made subsequent to the balance sheet date.
• D) Review changes in internal control during the period subsequent to the balance sheet date.

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Definitions:

Revenue Variance

The difference between actual revenue earned and the expected (or budgeted) revenue.

Spending Variances

The difference between the actual amounts spent and the budgeted amounts for various categories, used in budgetary control and analysis.

Spending Variance

The difference between the actual costs incurred and the budgeted or planned costs, often analyzed to manage and control company spending.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.