The auditor's responsibility with respect to events occurring between the balance sheet date and the end of the audit examination is best expressed by which of the following statements?
A) The auditor is fully responsible for events occurring in the subsequent period and should extend all detailed procedures through the last day of fieldwork.
B) The auditor is responsible for determining that a proper cutoff has been made and performing a general review of events occurring in the subsequent period.
C) The auditor's responsibility is to determine that a proper cutoff has been made and that transactions recorded on or before the balance sheet date actually occurred.
D) The auditor has no responsibility for events occurring in the subsequent period unless these events affect transactions recorded on or before the balance sheet date.

Question

Quizplus · Accepted Answer

The auditor's responsibility with respect to events occurring between the balance sheet date and the end of the audit examination is to determine that a proper cutoff has been made and perform a general review of events occurring in the subsequent period. The auditor does not have to extend all detailed procedures through the last day of fieldwork, as stated in option A. Option C is partially correct but does not include the general review of events occurring in the subsequent period. Option D is incorrect as the auditor has a responsibility to consider and evaluate events occurring in the subsequent period, even if they do not affect transactions recorded on or before the balance sheet date.

The Auditor's Responsibility with Respect to Events Occurring Between the Balance