Accounting · Auditing and Window Dressing

Which of the following procedures is most appropriate for detecting 'window dressing' in financial statements during an audit?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Critical examination of transactions occurring immediately before and after the balance sheet date✓
2Verification of the mere arithmetic accuracy of the subsidiary books
3Performing routine checking of all day-to-day ledger postings
4Superficial comparison of the current year trial balance with the previous year's balance

Correct answer

Critical examination of transactions occurring immediately before and after the balance sheet date

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