Which of the following procedures should an auditor generally perform regarding subsequent events?
A) Compare the latest available interim financial statements issued after year-end with the financial statements being audited.
B) Send second requests to the client's customers who failed to respond to initial accounts receivable confirmation requests.
C) Communicate material weaknesses in internal controls to those charged with governance.
D) Review the cutoff bank statements for several months after year-end.

Question

Quizplus · Accepted Answer

Performing a comparison of the latest available interim financial statements issued after year-end with the financial statements being audited is a standard procedure in auditing subsequent events. This is because any events that occurred after the year-end but before the issuance of the financial statements can have an impact on their accuracy and completeness. Therefore, this procedure helps the auditor ensure that such events are appropriately reflected in the financial statements. Options B, C, and D are not directly related to the auditing of subsequent events.

Which of the Following Procedures Should an Auditor Generally Perform