When the auditor has completed the tests of details of balances and enters phase IV of the audit process, she or he 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

Phase IV of the audit process involves performing additional audit procedures related to subsequent events and contingent liabilities. This includes reviewing any events that occurred after the balance sheet date but before the issuance of the financial statements, as well as searching for any potential contingent liabilities that may need to be disclosed in the financial statements. The other options listed may have been addressed in earlier phases of the audit process but are not specifically related to Phase IV.

When the Auditor Has Completed the Tests of Details of Balances