The auditor has a responsibility to review transactions and activities occurring after the balance sheet date to determine whether anything occurred that might affect the valuation or disclosure of the statements being audited. The auditing procedures required to verify these transactions are commonly referred to as the review for:
A) contingent liabilities.
B) subsequent years' transactions.
C) subsequent events.
D) late unusual occurrences.

Question

Quizplus · Accepted Answer

The auditor's responsibility to review transactions and activities occurring after the balance sheet date is commonly referred to as the review for subsequent events. These subsequent events may include things like contingent liabilities, but the term "subsequent events" encompasses a broader range of transactions and activities that occurred after the balance sheet date. Choices A, B, and D are not as comprehensive or accurate as choice C.

The Auditor Has a Responsibility to Review Transactions and Activities