Problem

Which of the following procedures would a CPA most likely perform in planning a financial...

Which of the following procedures would a CPA most likely perform in planning a financial statement audit?

a. Make inquiries of the client’s lawyer concerning pending litigation.

b. Perform cutoff tests of cash receipts and disbursements.

c. Compare financial information with nonfinancial operating data.

d. Recalculate the prior-years’ accruals and deferrals.

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