If an auditor dates the auditor's report on financial statements for the year ended December 31, 2013, as of February 10, 2014, except for Note J, as to which the date is March 3, 2014, the auditor is acknowledging responsibility to actively search for and ensure proper handling by management of:
A)all subsequent events occurring through March 3, 2014.
B)all subsequent events occurring through February 10, 2014.
C)all subsequent events occurring through February 10, 2014 and the specific subsequent event referred to in Note J through March 3, 2014.
D)only the specific subsequent event referred to in Note J as of March 3, 2014.

Question

Quizplus · Accepted Answer

By dating the auditor's report as of February 10, 2014, the auditor is acknowledging responsibility for subsequent events occurring through that date. However, by specifically dating Note J as of March 3, 2014, the auditor is acknowledging responsibility for a specific subsequent event that occurred after the date of the report. Therefore, the auditor is responsible for subsequent events occurring through February 10, 2014, and the specific subsequent event referred to in Note J through March 3, 2014. Choice A is incorrect as it includes subsequent events occurring after March 3, 2014, which are not the responsibility of the auditor. Choice B is incorrect because it does not take into account the specific subsequent event referred to in Note J. Choice D is incorrect because it limits the responsibility of the auditor to only the specific subsequent event referred to in Note J.

If an Auditor Dates the Auditor's Report on Financial Statements