Final answer:
Audit standards require auditors to conduct specific audit procedures to identify subsequent events that may occur up through the date of the auditor's report, as indicated in option A. These procedures help ensure that financial statements provide an accurate representation of the company's financial position at the year's end.
Step-by-step explanation:
Audit standards require auditors to conduct specific audit procedures to identify subsequent events that may occur up through the date of the auditor's report. This is stated in option A: Conduct specific audit procedures to identify subsequent events that may occur up through the date of the auditor's report. It is not uncommon in auditing for subsequent events to occur between the fiscal year-end date and the date on which the auditor's report is released.
Auditors are responsible for evaluating the effect of these subsequent events on the financial statements and disclosures, and as needed, they must ensure that the financial statements are adjusted or disclosures are made to reflect events occurring during this period. This is to ensure that the financial statements provide a true and fair view of the company's financial situation at the balance sheet date.
Options B, C, and D either misstate the requirements (B refers to a period after the auditor's report, C suggests analytical procedures are optional, and D incorrectly suggests delegation to the internal audit function) or do not fully comply with the detailed responsibilities of external auditors concerning subsequent events.