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 statements being audited. The procedures required to verify these transactions are commonly referred to as the review for
A) contingent liabilities.
B) subsequent year's transactions.
C) late unusual occurrences.
D) subsequent events.

Question

Quizplus · Accepted Answer

The term used for reviewing transactions and activities occurring after the balance sheet date is subsequent events. The procedures required to verify these transactions are commonly referred to as the review for subsequent events, which is the best choice among the given options. Contingent liabilities, late unusual occurrences, and subsequent year's transactions are separate concepts and not directly related to the review for subsequent events.

The Auditor Has a Responsibility to Review Transactions and Activities