Procedurused by an auditor when conducting a subsequent events review include:
A) assessing continued compliance with borrowing limits and loan covenants.
B) enquiring of those charged with governance as to whether any subsequent events have occurred that may affect the financial statements.
C) reading minutes of the meetings of the board of directors.
D) all of the above.

Question

Quizplus · Accepted Answer

All of the options mentioned are necessary steps for an auditor when conducting a subsequent events review. Assessing continued compliance with borrowing limits and loan covenants helps identify any potential issues with the company's financial stability, while enquiring of those charged with governance and reading minutes of the board of directors' meetings can provide relevant information about any subsequent events that may affect the financial statements. Therefore, the best choice is D - all of the above.

Procedurused by an Auditor When Conducting a Subsequent Events Review