Procedures Used by an Auditor When Conducting a Subsequent Events

question 35

Multiple Choice

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

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

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Definitions:

Antecedent

The first part of a conditional statement, the "if" part, upon which the consequent depends.

Pure Hypothetical

A speculative assumption or scenario, often used in reasoning, that is not grounded in known facts or current reality.

Categorical Syllogism

A form of reasoning consisting of three propositions: a major premise, a minor premise, and a conclusion, each of which may be categorized by being either affirmative or negative.

Fallacy

A mistaken belief or an error in reasoning, often resulting in invalid or misleading arguments.