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

Question

Quizplus · Accepted Answer

The auditor's responsibility for reviewing the subsequent events is from the balance sheet date until the date of the auditor's report. This is because the auditor is responsible for providing an opinion on the financial statements as of the balance sheet date, and any events occurring after that can impact the financial statements and require disclosure in the footnotes or adjustments to the financial statements. The date of the auditor's report represents the date when the auditor completed their work and is deemed the end of the audit period.

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