Events or transactions occurring after the balance sheet date and before the audit report date, can be useful in identifying and evaluating the reasonableness of estimates.

Question

Quizplus · Accepted Answer

This is true. Subsequent events or transactions can provide additional information that may impact the estimates made in the financial statements. As such, auditors may need to consider these events when evaluating the reasonableness of the estimates made by management.

Events or Transactions Occurring After the Balance Sheet Date and Before