Question

A/an _______ is an event that occurs between the date of the financial statements and the date of the auditor's report.

A) Subsequent event
B) Dual event date
C) Auditor's report event
D) Financial event.

Answer 1

A) subsequent event is one that happens after the financial statement date but before the auditor's report is released. It is crucial for the accuracy of financial reporting and auditing.

Step-by-step explanation:

A subsequent event is an event that occurs between the date of the financial statements and the date of the auditor's report. This can impact the financial information presented and may need to be disclosed in the audit report.

Subsequent events must be evaluated by the auditing team to determine if they provide additional evidence about conditions that existed at the date of the balance sheet or represent conditions that arose subsequent to that date

There are typically two types of subsequent events: recognized (those providing additional evidence about conditions that existed at the date of the balance sheet) and non-recognized (those that are indicative of conditions that arose after the balance sheet date).