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:

Cohesion

The ability of water molecules to cling to each other due to the process of hydrogen bonding.

Negative Pressure Potential

A force that contributes to the movement of water in plants, created by the evaporation of water from the stomata, resulting in a suction effect.

Venation

The pattern of veins in a leaf or insect's wing, which support the structure and transport fluids, like nutrients and water.

Identification

The process of recognizing or establishing the identity of a person or thing, often through specific characteristics or markers.