Question

Which of the following correctly states the period for which the auditor is responsible for subsequent events?

a. The balance sheet date to the date the audit report is issued.

b. The balance sheet date to the end of field work.

c. The balance sheet date to the date of subsequent discovery of omitted procedures.

d. All of the above.

Answer 1

The auditor is responsible for subsequent events from the balance sheet date until the audit report is issued. This responsibility includes identifying events that might affect the financial statements presented. Option a.

Step-by-step explanation:

The period for which the auditor is responsible for reviewing subsequent events is correctly stated as the balance sheet date to the date the audit report is issued. This period is critical because it involves the identification of events that may require adjustment to or disclosure in the financial statements that the auditor is reporting on. For instance, if there were legal settlements, asset impairments, or changes in debt arrangements, the auditor would need to consider the implications of those events on the financial statements up until the point that the audit report is finalized and issued.