Question

Auditors should perform audit procedures relating to subsequent events?

A. Through year end.
B. Through issuance of the audit report.
C. Through the last day of field work.
D. For a reasonable period after year end.

Answer 1

Auditors should perform audit procedures relating to subsequent events for a reasonable period after year end to ensure the accuracy of financial statements. Option d.

Step-by-step explanation:

Auditors should perform audit procedures relating to subsequent events for a reasonable period after year end option d. This means that auditors should continue to gather information and perform testing to ensure that financial statements are not materially misstated due to events that occurred after the year-end balance sheet date. This is important because subsequent events can have a significant impact on a company's financial position, such as the settlement of a lawsuit or the determination of the collectability of a receivable.