Which of the following substantive procedures would not ordinarily be used by auditors in evaluating the potential existence of subsequent events?
A)Reviewing the latest interim financial statements.
B)Performing cut-off testing near year end.
C)Inquiring of officers and other client executives.
D)Obtaining written representations.

Question

Quizplus · Accepted Answer

Cut-off testing near year end is performed to ensure that transactions are recorded in the correct period. It is not a substantive procedure related to evaluating the potential existence of subsequent events. The other options listed are substantive procedures that auditors may use to evaluate subsequent events.

Which of the Following Substantive Procedures Would Not Ordinarily Be