Procedures Used by an Auditor When Conducting a Subsequent Events

question 30

Multiple Choice

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

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

Recognize the significance of close versus casual relationships and their impact on personal satisfaction.

Assess the influence of belongingness on life satisfaction and perceived meaning in life.

Understand the strategies individuals employ to gain social acceptance and belong to groups.

Understand the concept of ethical decision-making and its significance in the workplace.

---

Definitions:

Operation Of Law Authority

Legal changes or transfers that occur automatically because of established laws, without the need for action by individuals.

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principal, leading others to believe someone has the authority to act on behalf of the principal.

Express Authority

The explicitly given power or permission to act on behalf of another party, particularly in a legal or business context.

Duty Of Loyalty

A duty that states managers must place the corporation’s interests above their own.