Normally,the auditor's work does not extend into the following year.However,the auditing standards require the auditor to consider certain events that occur in the year following the year under audit,referred to as
A)following events
B)substantive tests of transactions
C)subsequent events
D)disclosure events

Question

Quizplus · Accepted Answer

The auditor is required to consider subsequent events, which are events that occur between the end of the year being audited and the date of the auditor's report. The auditor must evaluate these events to determine if they require adjustment or disclosure in the financial statements. These events could include things like a major lawsuit being settled or a significant acquisition or divestiture. The auditor's responsibility for subsequent events extends up until the date of the auditor's report, even if that falls into the following year.

Normally,the Auditor's Work Does Not Extend into the Following Year