Procedures used by an auditor when conducting a subsequent events review include:
A) assessing continued compliance with borrowing limits and loan covenants.
B) enquiring of those charged with governance as to whether any subsequent events have occurred that may affect the financial statements.
C) reading minutes of the meetings of the board of directors.
D) all of the above.

Question

Quizplus · Accepted Answer

When conducting a subsequent events review, an auditor should assess continued compliance with borrowing limits and loan covenants (choice A), enquire of those charged with governance as to whether any subsequent events have occurred that may affect the financial statements (choice B), and read minutes of the meetings of the board of directors (choice C). Therefore, the best choice is D, which includes all of the above.

Procedures Used by an Auditor When Conducting a Subsequent Events