MC #4 For which of the following balance sheet accounts would the auditor be LEAST likely to perform analytical procedures? accounts receivable inventory accounts payable cash MC #10 An audit client, Cornely Corp, has a December 31, 2019 year-end and an audit report date of March 10, 2020. An example of a Type I subsequent event is: In the month of February 2020, the company's entire Board of Directors unexpectedly submitted their letters of resignation. On January 31, 2020, the IRS notified the client that they are beginning a new audit related to 2019 income taxes. Watkins, Inc. is a large customer with a material Accounts Receivable balance that was deemed fully collectible at year-end. On February 6, 2020 Watkins's factory was destroyed by a tornado and they can no longer pay their Accounts Receivable to Cornely. Francis Corp. is suing Cornely Corp. for patent infringement. Because the odds were against them winning this lawsuit, on Dec. 31, 2019 Cornely accrued a loss. On March 2, 2020 the court surprisingly decided in Cornely's favor and Francis indicates they will not appeal the court's ruling. MC #12 Purchase cutoff procedures should be designed to test whether or not all inventory: owned by the company is in the possession of the company. purchased and received before the year-end was recorded before year-end. on the year-end balance sheet was carried at lower of cost or market. on the year-end balance sheet was paid for by the company