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 and determine if any of these events require
A)disclosure in the financial records for the year under audit
B)adjustment to the financial statements under audit
C)disclosure in the prior financial statements
D)adjustment to the financial records for the year under audit
E)disclosure in the financial statements under audit
F)both A and B
G)both B and E
H)both C and D

Question

Quizplus · Accepted Answer

Events that occur after the balance sheet date but before the financial statements are issued (or are available to be issued) may provide additional evidence about conditions that existed at the balance sheet date. These events may require adjustment to the financial statements under audit (B) or disclosure in the financial statements under audit (E).

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