Economics · Auditing and Subsequent Events
An auditor is evaluating whether a material adjusting event has occurred regarding a disputed trade receivable balance. Which of the following procedures should the auditor perform to form a conclusion?
- 1Review subsequent cash receipts from the customer and inspect recent correspondence regarding the dispute.✓
- 2Reperform physical counts of inventory items at the customer's premises.
- 3Review the internal audit department's charter and yearly plan.
- 4Recalculate the entire sales ledger control account balance.
Correct answer
Review subsequent cash receipts from the customer and inspect recent correspondence regarding the dispute.
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