Question

Examples of initial procedures that an auditor may perform include _______.

1) trace beginning balances to working papers from the prior year's audit
2) scan the transactions in the account for unusual items
3) obtain a trial balance or other detailed report for the account
4) All of these answer choices are correct.

Answer 1

Initial procedures that an auditor may perform include tracing beginning balances, scanning transactions, and obtaining trial balances.

Step-by-step explanation:

The correct answer is 4) All of these answer choices are correct. When conducting an audit, an auditor may perform multiple initial procedures to gather necessary information and assess the accuracy of the financial statements. These procedures can include tracing beginning balances to working papers from the prior year's audit, scanning the transactions in the account for unusual items, and obtaining a trial balance or other detailed report for the account.