The statement that best expresses the auditor's responsibility with respect to events occurring between the balance sheet date and the end of the audit is that:
A)The auditor has no responsibility for events occurring in the subsequent period unless these events affect transactions recorded on or before the balance sheet date.
B)The auditor's responsibility is to determine that a proper cutoff has been made and that transactions recorded on or before the balance sheet date actually occurred.
C)The auditor is fully responsible for events occurring in the subsequent period and should extend all detailed procedures through the last day of field work.
D)The auditor is responsible for determining that a proper cutoff has been made and performing a general review of events occurring in the subsequent period.

Question

Quizplus · Accepted Answer

The best statement is that the auditor is responsible for determining that a proper cutoff has been made and performing a general review of events occurring in the subsequent period. While the auditor should perform some review of events occurring in the subsequent period, they are not fully responsible for all events occurring after the balance sheet date. Their main responsibility is to ensure that transactions recorded on or before the balance sheet date are properly recorded and that a cutoff has been made. However, a general review of subsequent events can help the auditor ensure the accuracy and completeness of financial statements.

The Statement That Best Expresses the Auditor's Responsibility with Respect