Which of the following statements is correct?
A)The auditor is responsible for ensuring that events occurring up to the date of the annual general meeting are reflected in the financial report.
B)The date of the auditor's report establishes the date of the auditor's responsibility for knowledge of events that should be reflected in the financial report.
C)The auditor's report should be dated the same date as the annual general meeting.
D)The only procedures that should be performed after balance date are analytical procedures.

Question

Quizplus · Accepted Answer

The date of the auditor's report establishes the date of the auditor's responsibility for knowledge of events that should be reflected in the financial report. This means that the auditor is responsible for events occurring up to the date of the auditor's report, not necessarily the date of the annual general meeting. Therefore, statement A is incorrect. The auditor's report should be dated no earlier than the date on which sufficient appropriate audit evidence has been obtained, and it should be issued after the financial report has been prepared. Statement C is therefore incorrect. Finally, while analytical procedures are commonly used as part of post-balance sheet date procedures, there may be other procedures that the auditor needs to perform to obtain sufficient appropriate audit evidence. Therefore, statement D is also incorrect.

Which of the Following Statements Is Correct