The auditor has a responsibility to review transactions and activities occurring after the year-end to determine whether anything occurred that might affect the statements being audited. The procedures required to verify these transactions are commonly referred to as the review for:
A) contingent liabilities.
B) subsequent year's transactions.
C) late unusual occurrences.
D) subsequent events.

Question

Quizplus · Accepted Answer

The term used for reviewing transactions and activities occurring after the year-end is "subsequent events." Therefore, the correct choice is D. A is incorrect because it refers to a specific type of subsequent event, not the general review of events. B and C are incorrect because they are not commonly used terms in accounting/auditing for reviewing post-year-end transactions.

The Auditor Has a Responsibility to Review Transactions and Activities