In connection with the annual audit, which of the following is not a "subsequent events" procedure?
A) Prepare any necessary closing journal entries.
B) Examine the minutes of stockholders' and directors' meetings subsequent to the balance sheet date.
C) Review journals and ledgers.
D) Obtain a letter of representation.

Question

Quizplus · Accepted Answer

Option A refers to a standard year-end closing procedure that is not related to subsequent events. B, C, and D are all relevant subsequent events procedures. Examining minutes of meetings held after the balance sheet date can provide information about any events that may affect the financial statements. Reviewing journals and ledgers for periods after the balance sheet date can help detect any material transactions that occurred after the end of the reporting period. Lastly, obtaining a letter of representation from management is a key subsequent events procedure that confirms the completeness and accuracy of the financial statements up to the date that the letter is signed.

In Connection with the Annual Audit, Which of the Following