In regard to identifying and evaluating subsequent events, AU 560.12 specifies that the auditor inquires of management having responsibility for financial and accounting matters as to all of the following except:
A) any substantial contingent liabilities or commitments existing at the balance sheet date or date of inquiry.
B) any significant changes in capital stock, long-term debt, or working capital to the date of inquiry.
C) the minutes of meetings of directors, stockholders, and other appropriate committees.
D) the current status of items previously accounted for on the basis of tentative, preliminary, or inconclusive data.
E) whether any unusual adjustments have been made since the balance sheet date.

Question

Quizplus · Accepted Answer

AU 560.12 does not specify that the auditor inquires of management about the minutes of meetings of directors, stockholders, and other appropriate committees as part of identifying and evaluating subsequent events. This is typically part of other audit procedures.

In Regard to Identifying and Evaluating Subsequent Events, AU 560