Which of these substantive procedures is not used to obtain evidence about contingencies?
A) Scanning expense accounts for credit entries.
B) Obtaining a letter from the client's attorney.
C) Reading the minutes of the board of directors' meetings.
D) Examining terms of sale in sales contracts.

Question

Quizplus · Accepted Answer

Scanning expense accounts for credit entries is not a relevant or commonly used procedure to obtain evidence about contingencies. Contingencies are potential liabilities that may or may not occur in the future, and are usually documented through legal agreements, minutes of board meetings, contracts, or correspondence. Scanning expense accounts for credit entries would be more relevant for detecting fraudulent transactions, errors, or unusual expenses.

Which of These Substantive Procedures Is Not Used to Obtain