Financial statements an audit may be conducted in

financial statements, an audit may be conducted in accordance with two sets of auditing
standards in their entirety. In this case, the auditor should add additional language to the
Auditor's Responsibility paragraph to state that the audit was conducted in accordance with both
sets of auditing standards.
Choice "d" is incorrect. The auditor may conduct the audit in accordance with both GAAS and
auditing standards issued by the PCAOB. An additional statement would be added to the
Auditor's Responsibility paragraph stating that both sets of standards were applied.
Choice "c" is incorrect. It is acceptable for an auditor to apply both GAAS and auditing
standards of another jurisdiction or country.
Choice "a" is incorrect. In certain audit engagements, the auditor may be required to comply with
International Standards on Auditing in addition to GAAS even if the audit is conducted in the
U.S.A.
Which of the following procedures should an auditor generally perform regarding subsequent
events?

Choice "a" is correct. When performing procedures regarding subsequent events, the auditor
generally will compare the latest available interim financial statements with the financial
statements being audited to determine if any significant subsequent event occurred that would
need to be reflected in the statements being audited.
Choice "d" is incorrect. Sending second requests to the client's customers who failed to respond
to initial A/R confirmation requests is a substantive procedure that provides evidence about
receivables existing at year end, not about subsequent events.
Choice "b" is incorrect. Internal control weaknesses should be communicated to those charged
with governance, but this communication provides no evidence about subsequent events.
Choice "c" is incorrect. Bank cut-off statements generally are reviewed for only a week to ten
days subsequent to year-end. Reviewing them for a longer period such as "several months"
would provide little additional audit evidence regarding the YE FS and thus would not be a cost
beneficial procedure.