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In an audit, subsequent procedures include all of the following except a. obtaining a representation letter from management b. asking legal counsel about any litigation on assessments c. requesting confirmation of accounts receivables d. reading the available minutes of the board of directors A subsequent event that will result in adjustment to the financial statements is the a. purchase or disposal of a business by the entity b. sale of capital stock or bond issue by the entity the financial statement c. settlement of a lawsuit for an amount greater than the amount accrued at the financial statement date d. loss by the entity of a manufacturing facility due to a fire Which is performed during the final review stage of the audit? a. Analytical procedures b. Agreed upon procedures C. Substantive tests d. Alternative procedures A subsequent event requiring disclosure in the notes to the financial statements is a. a merger discussion b. the application for a patent c. discussion with a customer that could lead to a 30% increase in sales d. the bankruptcy of a customer who purchased 40% of the client's output A walk-through is a combination of a. re-performance, inquiry and inspection b. inquiry, inspection and observation c. inspection, re-computation and observation d. authorization, recording and custody Which of the following is an inherent limitation of internal control? a. Incompatible duties b. Management overrides custody c. Separation of authorization, recording and d. A strong internal audit department The unqualified report on the audit of internal for a public co. contains a. introductory, scope and definition paragraphs b. inherent limitations, opinion and explanatory paragraphs c. Either (a) or (b) d. Both (a) and (b)