The auditing standards require the auditor to consider certain events that occur in the year following the year under audit,referred to as subsequent events,and to determine if any of these events require disclosure or adjustment in the financial statements under audit.

Question

Quizplus · Accepted Answer

This statement is true. The auditing standards do require the auditor to consider subsequent events that occur after the balance sheet date but before the audit report is issued, and to determine if these events require disclosure or adjustment in the financial statements under audit.

The Auditing Standards Require the Auditor to Consider Certain Events