Which One of the Following Is Not an Example of Additional

question 92

Multiple Choice

Which one of the following is not an example of additional procedures that relate to the discovery of subsequent events?

• A)Partner review of all workpapers.
• B)Reading interim financial statements and comparing them to the audited statements to note significant changes.
• C)Reading the board of directors' minutes for all meetings during the year and after year- end through the end of field work.
• D)Management inquiry.

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Definitions:

Indirect Method

A technique for preparing the cash flow statement, where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.

Financial Statements

Compiled reports that convey the financial performance and position of a company, including the balance sheet, income statement, and cash flow statement.

Net Cash Flow

The difference between a company's total cash inflows and outflows during a specific period.

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period.