A Subsequent Event Occurs

question 23

Multiple Choice

A subsequent event occurs:

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

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Definitions:

Negative Exponential Distribution

A probability distribution used to model time between independent events that occur at a constant average rate.

Average Arrival Rate

The average rate at which entities (such as customers or products) arrive at a specific point or system over a defined period.

M/D/1

A notation in queue theory representing a system with a single server, where arrivals are Markovian (Poisson process), service times are deterministically fixed, and there is one server.

Constant Service Time

A condition in queuing theory where the time required to serve each customer is the same and does not vary.