Question

Audit procedures are concerned with the nature, extent, and timing in gathering audit evidence. Which, of the following, is true as to the timing of audit procedures?

A)
Prior to the fiscal year-end of the client
Subsequent to the fiscal year-end of the client
Yes Yes

B)
Prior to the fiscal year-end of the client
Subsequent to the fiscal year-end of the client
No No

C)
Prior to the fiscal year-end of the client
Subsequent to the fiscal year-end of the client
Yes No

D)
Prior to the fiscal year-end of the client
Subsequent to the fiscal year-end of the client
No Yes

Answer 1

Audit procedures take place both before and after a client's fiscal year-end to ensure auditors gather enough evidence for their opinion on the financial statements.

Step-by-step explanation:

The timing of audit procedures can occur both prior to and subsequent to the fiscal year-end of the client. This means that auditors perform certain procedures before the year-end to understand the business and its environment, test controls, and perform substantive procedures. After the year-end, they complete the substantive procedures and gather sufficient appropriate evidence to formulate their opinion on the financial statements. Therefore, the correct answer is:

A) Prior to the fiscal year-end of the client Subsequent to the fiscal year-end of the client Yes Yes