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 entity's legal counsel concerning litigation.
D) An investigation of material weaknesses in internal control previously communicated to the entity.

Question

Quizplus · Accepted Answer

During the review of subsequent events, the auditor would typically perform an inquiry of the entity's legal counsel concerning litigation. This is to ensure that any potential litigation that could affect the financial statements of the entity is disclosed properly in the financial statements. Other procedures mentioned in the options are not directly related to the review of subsequent events.

Which of the Following Procedures Would an Auditor Ordinarily Perform