Question

Guillermo, CPA, is auditing Medium Corporation. He is gathering evidence regarding subsequent events at Medium Corp. that may need to be disclosed in the yearend financial statements. Which one of the following procedures is least appropriate for Guillermo to perform? A. Confirm as of the date of the auditor's report accounts receivable that have increased significantly from the year-end date. B. Read the minutes of the meetings of the board of directors. C. Inquire of management concerning events that may have occurred. D. Obtain a letter from legal counsel as of or near the date of the auditor's report.

Answer 1

The least appropriate procedure for Guillermo, CPA, to perform would be option D: Obtain a letter from legal counsel as of or near the date of the auditor's report.