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 "b" 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 "c" is incorrect. Internal control weaknesses should be communicated to those charged with
governance, but this communication provides no evidence about subsequent events.
Choice "d" 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.
