Procedures Used by an Auditor When Conducting a Subsequent Events

question 30

Multiple Choice

Procedures used by an auditor when conducting a subsequent events review include:

• A) assessing continued compliance with borrowing limits and loan covenants.
• B) enquiring of those charged with governance as to whether any subsequent events have occurred that may affect the financial statements.
• C) reading minutes of the meetings of the board of directors.
• D) all of the above.

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Definitions:

Socrates

An ancient Greek philosopher known for his contributions to ethics and epistemology, and as a pioneering figure in the field of philosophy, famous for the Socratic method.

Laws

Rules and regulations established by society, institutions, or natural phenomena, guiding behavior or processes.

Honor

A code or sense of integrity and morality, often associated with fulfilling social obligations, duty, or maintaining one's reputation.

Principles

Fundamental truths, laws, or doctrines that serve as the foundation for a system of belief or behavior or for a chain of reasoning.