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) late unusual occurrences.
B) subsequent events.
C) contingent liabilities.
D) subsequent years' transactions.

Question

Quizplus · Accepted Answer

Subsequent events are transactions and activities occurring after the balance sheet date but before the audit report is issued. The auditor has a responsibility to review these events to determine whether they need to be disclosed or require adjustment of the financial statements.

The Auditor Has a Responsibility to Review Transactions and Activities