Which of the following substantive procedures would auditors most likely perform to obtain evidence about the occurrence of subsequent events?
A. Recompute a sample of large-dollar transactions occurring after cutoff for arithmetic accuracy.
B. Investigate changes in shareholders’ equity occurring after the date of the financial statements.
C. Send confirmations to vendors with whom the client normally does business but for which no balance in accounts payable is noted.
D. Confirm bank accounts established after the date of the financial statements.
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