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:

Profit Allocation

The process of distributing a company's earnings among its shareholders, partners, or other stakeholders according to agreed-upon terms.

Preponderance Of Evidence

A standard of proof in civil cases, requiring that a claim be more likely true than not true.

De Jure Corporation

Latin for “lawful corporation” a corporation that has met the mandatory statutory provisions and thus received its certificate of incorporation.

De Facto Corporation

A company that acts like a corporation and enjoys some of its benefits, despite not being duly incorporated according to statutory requirements.