Which of the Following Procedures Should the Search for Subsequent

question 39

Multiple Choice

Which of the following procedures should the search for subsequent events involve?

• A)Gain an understanding of the procedures used by management to ensure that subsequent events are identified
• B)Inquire of management about whether there had been any events that have occurred before the date of the financial statements that might affect the financial statements
• C)Read the minutes of meetings of shareholders,directors,and management and inquire about matters discussed at such meetings for which minutes are not yet available
• D)Read the interim financial records
• E)Review the subsequent event expense account
• F)both A and C
• G)both B and D
• H)both D and E

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Definitions:

Solar Power

The conversion of energy from sunlight into electricity, either directly using photovoltaic cells or indirectly through concentrated solar power systems.

Violation

The act of breaching, disobeying, or infringing upon a law, rule, or agreement.

Profit

The financial gain obtained when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Corporate Governance

A set of policies specifying the rights and responsibilities of the various participants in a corporation and spelling out the rules and procedures for making corporate decisions.