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 one of the following procedures is in the first category?
A) Review journals and ledgers of year 2 to determine the existence of any transaction related to year 1.
B) Obtain a management representation letter written by the client.
C) Examine subsequent period sales and purchases transactions to determine whether the cutoff is accurate.
D) Inquire of the client regarding contingent liabilities.

Question

Quizplus · Accepted Answer

C) Examine subsequent period sales and purchases transactions to determine whether the cutoff is accurate. This procedure is typically integrated as part of the verification of year-end account balances to ensure transactions are recorded in the correct accounting period.

The Audit Procedures for the Subsequent Events Review Can Be