When subsequent events are used to evaluate the amounts included in the year-end financial statements, auditors must distinguish between conditions that existed at the balance sheet date and those that came into being after the balance sheet date.

Question

Quizplus · Accepted Answer

This statement is true as auditors need to distinguish between events that occurred before the balance sheet date (which can affect the amounts in the financial statements) and events that occurred after the balance sheet date (which are not reflected in the financial statements).

When Subsequent Events Are Used to Evaluate the Amounts Included