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:

Federal Income Tax

A tax levied by the U.S. government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership with the limited liability of a corporation.

LLC

Limited Liability Company; a business structure allowing owners to benefit from the advantages of both the corporation and partnership forms of business.

General Partner's Liability

describes the legal responsibility of general partners in a partnership to bear unlimited personal liability for the debts and obligations of the partnership.