For audit purposes,subsequent events are defined as events that occur ________.
A)any time after balance sheet date
B)after the date of the audit report
C)after the balance sheet date but prior to the date of the audit report
D)after the date of the audit report and concern contingencies that are not reflected in the financial statements

Question

Quizplus · Accepted Answer

Subsequent events are events that occur after the balance sheet date but prior to the date of the audit report. This is because the financial statements are prepared as of the balance sheet date, and any events that occur after that date may affect the financial statements but will not be reflected in them until a later period. It is the responsibility of the auditor to ensure that any subsequent events that may affect the financial statements are properly disclosed or adjusted. Events that occur after the date of the audit report are not considered subsequent events, as the auditor has already issued their opinion on the financial statements as of that date.

For Audit Purposes,subsequent Events Are Defined as Events That Occur