Which of the Following Procedures Should the Search for Subsequent

question 51

Multiple Choice

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

• A)Gain an understanding of the procedures used by auditors to ensure that subsequent events are identified
• B)Inquire of management about whether there had been any events that have occurred after the date of the financial statements that might affect the financial statements
• C)Request 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 statements
• E)Review the subsequent event expense account
• F)both B and D
• G)both C and A
• H)both D and E

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Definitions:

Internal Environment

The conditions, entities, events, and factors within an organization that influence its activities and choices, often including its employees, management, corporate culture, and internal policies.

Safety Regulations

Rules and standards developed to ensure the physical safety of workers and the public.

External Environment

The conditions, entities, events, and factors surrounding an organization that influence its activities and choices.

Corporate Strategies

High-level strategies formulated by top management to achieve corporate objectives and manage the business portfolio and growth of an organization.