A Subsequent Event Occurs

question 37

Multiple Choice

A subsequent event occurs:

• A)after the audit completes the tests of controls
• B)before the end of the financial year
• C)between the client's financial year-end and the date of the auditor's report
• D)after the auditor signs the audit engagement letter

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Definitions:

Circular Mils

A unit of area used specifically in the calculation of wire cross-sectional areas, defined as the area of a circle with a diameter of one mil (one-thousandth of an inch).

Diameter

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere.

MEGGER

A brand name that has become a generic term for insulation resistance testers, which measure the resistance of electrical insulation.

Ohmmeter

A device used for measuring electrical resistance in ohms.