1what is the correct answer choice? Charlie and Keona are discussing the upcoming review of a client's subsequent events by their firm one day over lunch. Charlie, arecent hire, asks Keona to explain how this is typically handled by the audit firm. Which of the following is the most appropriateresponse to this question by Keona?O Our firm generally requests an official written document from senior management containing assurances that nosubsetuent events have occurred.O We typically perform substantive and analytical procedures on all the client's accounts as part of the audit, thus if anysubsequent events existed, we would already be aware of them.O The subsequent events review is typically handled by the internal audit function. This is because the staff working in thisfunction know the client better than we do.O The determination of how to audit and review a client's subsequent events is a subjective one. The auditor often considerswhat they have learned about the client during risk assessment and may choose to scan post year-end journal entries and/orreview the minutes of board of directors meetings.

Subsequent events refers to an event that occurred between the reporting period and the date of…

Answered: O The determination of how to audit and…

O The determination of how to audit and review a client's subsequent events is a subjective one. The auditor often considers

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 40MCQ

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