The Audit Procedures for the Subsequent Events Review Can Be

question 23

Multiple Choice

The audit procedures for the subsequent events review can be divided into two categories: (1) procedures integrated as a part of the verification of year-end account balances, and (2) those performed specifically for the purpose of discovering subsequent events. Which of the following procedures is in category 1?

• A) Inquiries of client regarding contingent liabilities.
• B) Obtain a letter of representation written by client.
• C) Subsequent period sales and purchases transactions are examined to determine whether the cutoff is accurate.
• D) Review journals and ledgers of year 2 to determine the existence of any transaction related to year 1.

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Definitions:

Tolerance

The ability or willingness to tolerate something, in particular the existence of opinions or behavior that one does not necessarily agree with.

Dissociation

A psychological state in which a person feels disconnected from their thoughts, feelings, memories, or sense of identity, often a response to trauma or stress.

Consciousness

Consciousness refers to the state of being aware of and able to think about one's environment, thoughts, and experiences.

Social Acceptance

The degree to which an individual is accepted or regarded favorably by society or a social group.