The auditor's responsibility for "reviewing the subsequent events" of a public company that is about to issue new securities is normally limited to the period of time
A) beginning with the balance sheet date and ending with the date of the auditor's report.
B) beginning with the start of the fiscal year under audit and ending with the balance sheet date.
C) beginning with the start of the fiscal year under audit and ending with the date of the auditor's report.
D) beginning with the balance sheet date and ending with the date the registration statement becomes effective.

Question

Quizplus · Accepted Answer

The auditor's responsibility for reviewing subsequent events in the case of a public company that is about to issue new securities is normally limited to the period of time beginning with the balance sheet date and ending with the date the registration statement becomes effective. This is because the registration statement must include audited financial statements for a period that ends no earlier than 135 days before the registration statement becomes effective. Therefore, the auditor's responsibility for subsequent events extends until the date the registration statement becomes effective.

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