When the auditor has completed the tests of details of balances and enters phase 4 of the audit process, she must still perform audit procedures for which of the following?
A)Contingent liabilities and employee compensation
B)Contingent liabilities and subsequent events
C)Subsequent events and contractual commitments
D)Subsequent events and unrecorded liabilities

Question

Quizplus · Accepted Answer

In phase 4 of the audit process, the auditor must perform audit procedures for contingent liabilities and subsequent events to ensure that all potential liabilities and events that could affect the financial statements are properly disclosed or accounted for.

When the Auditor Has Completed the Tests of Details of Balances