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C_TS412_1909 Braindumps VCE
  • Exam Code: C_TS412_1909
  • Exam Name: SAP Certified Application Associate - SAP S/4HANA Project Systems

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NEW QUESTION: 1
Which of the following procedures would an auditor ordinarily perform during the review of subsequent
events?
A. Inquire of the client's legal counsel concerning litigation.
B. Analyze related party transactions to discover possible irregularities.
C. Investigate significant deficiencies in internal control previously communicated to the client.
D. Review the cut-off bank statements for the period after the year-end.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. An auditor would most likely obtain a letter from the entity's legal counsel describing
any pending litigation, unasserted claims, or loss contingencies, to obtain evidence that might impact the
year-end financial statements.
Choice "A" is incorrect. Reviewing cut-off bank statements for the period after year-end generally is
performed to evaluate the year-end cash balance, not to identify subsequent events.
Choice "C" is incorrect. Investigating significant deficiencies in internal control previously communicated to
the client would be a procedure performed as part of the planning process and would provide the auditor
with information regarding the internal control structure, not subsequent events.
Choice "D" is incorrect. Analyzing related party transactions to discover possible irregularities generally is
performed to evaluate financial statement disclosure, not to identify subsequent events.

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