Which of the following procedures would an auditor ordinarily perform during the review of subsequent events?
A) An analysis of related-party transactions for the discovery of possible irregularities.
B) A review of the cut-off bank statements for the period after the year-end.
C) An inquiry of the client's solicitor concerning litigation.
D) An investigation of material weaknesses in internal accounting control previously communicated to the client.

Question

Quizplus · Accepted Answer

During the review of subsequent events, an auditor would ordinarily perform an inquiry of the client's solicitor concerning litigation. This is done to identify any pending lawsuits or claims that may have an impact on the financial statements. The other options are not related to the review of subsequent events specifically.

Which of the Following Procedures Would an Auditor Ordinarily Perform