The Audit Procedures for the Subsequent Events Review Can Be

question 112

Multiple Choice

The audit procedures for the subsequent events review can be divided into two categories: (1) procedures normally 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 2?

• A) Correspond with attorneys.
• B) Test the collectability of accounts receivable by reviewing subsequent period cash receipts.
• C) Subsequent period sales and purchases transactions are examined to determine whether the cutoff is accurate.
• D) Compare the subsequent-period purchase price of inventory with the recorded cost as a test of lower-of-cost-or-market valuation.

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Definitions:

Formula Dependency

Describes a situation in spreadsheet applications where the calculation of one formula relies on the result of another formula or cell value.

IF Function Formula

A logical function in Excel that returns one value if a condition is true and another value if it's false.

Sales Data

Information collected about sales transactions, including quantities sold, prices, dates, and customer information, useful for analysis and decision-making.

Paste Options

A feature in many software applications that allows users to choose how copied data is formatted when it is pasted into a new location.