When the auditor has completed the tests of details of balances and enters phase IV of the audit process,she must still perform audit procedures for which of the following?
A)contingent liabilities and employee compensation
B)contingent liabilities and subsequent events
C)subsequent events and contractual commitments
D)subsequent events and unrecorded liabilities

Question

Quizplus · Accepted Answer

According to generally accepted auditing standards (GAAS), auditors are required to perform procedures related to subsequent events and contingent liabilities even after completing the tests of details of balances. Therefore, option B is the correct choice as it includes both subsequent events and contingent liabilities. The other options either miss one of these components or add unnecessary components to the answer.

When the Auditor Has Completed the Tests of Details of Balances