Specific audit procedures to identify subsequent events include _______.
A)obtaining an understanding of how management identifies subsequent events
B)reading the client's subsequent interim financial statements, if available, and other data such as budgets and cash flow forecasts
C)inquiring of the client's legal counsel regarding litigation, claims, and assessments
D)All of these answer choices are correct.

Question

Quizplus · Accepted Answer

To identify subsequent events, auditors should obtain an understanding of how management identifies them, read subsequent interim financial statements, budgets, and cash flow forecasts, and inquire with the client's legal counsel about any potential litigation or claims. Therefore, all of the answer choices are correct.

Specific Audit Procedures to Identify Subsequent Events Include _______