In connection with a review of the prepaid insurance account, which of the following audit procedures would you be least likely to use?
A) Recompute the portion of the premium that expired during the year.
B) Prepare excerpts of insurance policies for audit working papers.
C) Confirm premium rates with an independent insurance broker.
D) Examine support for premium payments.

Question

Quizplus · Accepted Answer

Confirming premium rates with an independent insurance broker may not be necessary for reviewing the prepaid insurance account as it does not directly relate to verifying the accuracy of the account balance. The other options listed would all be useful in determining the accuracy of the prepaid insurance account.

In Connection with a Review of the Prepaid Insurance Account