The auditor's responsibility for 'reviewing the subsequent events' of a client is normally limited to the period of time:
A) beginning with the balance sheet date and ending with the date of the auditor's report.
B) beginning with the start of the financial year under audit and ending with the balance sheet date.
C) beginning with the balance sheet date and ending with the date of the annual general meeting.
D) beginning with the start of the financial year under audit and ending with the date of the auditor's report.

Question

Quizplus · Accepted Answer

The auditor's responsibility for reviewing the subsequent events of a client is normally limited to the period of time beginning with the balance sheet date and ending with the date of the auditor's report. This is because the financial statements are meant to reflect the financial position of the client as at the balance sheet date, and events happening after that date may have a significant impact on the financial statements. The auditor needs to consider such events to ensure that the financial statements are not materially misstated.

The Auditor's Responsibility for 'Reviewing the Subsequent Events' of a Client