Question

If an auditor dates the auditor's report on financial statements for the year ended December 31, 2013, as of February 10, 2014, except for Note J, as to which the date is March 3, 2014, the auditor is acknowledging responsibility to actively search for and ensure proper handling by management of

1) all subsequent events occurring through March 3, 2014.
2) all subsequent events occurring through February 10, 2014.
3) all subsequent events occurring through February 10, 2014 and the specific subsequent event referred to in Note J through March 3, 2014.
4) only the specific subsequent event referred to in Note J as of March 3, 2014.

Answer 1

The auditor is responsible for ensuring that all subsequent events up to February 10, 2014, are reflected in the financial statements, and must also verify the proper handling of the specific event mentioned in Note J up to March 3, 2014.

Step-by-step explanation:

When an auditor dates their report for financial statements as of February 10, 2014, but provides a later date for Note J, it signifies different levels of responsibility regarding subsequent events.

The correct acknowledgment by the auditor would be all subsequent events occurring through February 10, 2014, and the specific subsequent event referred to in Note J through March 3, 2014. This means the auditor is responsible for reviewing all events that could affect the financial statements up to the date of the auditor's report (February 10, 2014), and additionally, any events related to the information detailed in Note J that occurred up until March 3, 2014.