Why should an auditor review the subsequent receipt of income such as dividends, interest, and commissions?

Multiple choice question for Auditing Mcqs. Select an option, then review the explanation below.

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To detect any revenue that has not been recordedTo verify accurate presentation in the balance sheetTo recalculate accrued income as of the balance sheet dateAny of the above

Explanation

The auditor examines subsequent income receipts primarily to uncover any revenue that might have been omitted from the records. This helps ensure completeness of revenue recognition. Other reasons include confirming proper disclosure and verifying accrued income calculations.

Practice related questions from the same subject.

1.What does the scope of a financial audit primarily include?
2.An audit engagement can be conducted for which type of entity?
3.What is the total number of Standards on Auditing that have been published?
4.Which one of the following does not belong to the category of engagement standards?
5.Identify the option that does not belong with the others:

Why should an auditor review the subsequent receipt of income such as dividends, interest, and commissions?

Explanation

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