The auditor is responsible for auditing the necessary disclosures when material lines of credit and compensating balance arrangements have been made by the client with a lender.

Question

Quizplus · Accepted Answer

The auditor is responsible for auditing the necessary disclosures related to material lines of credit and compensating balance arrangements made by the client with a lender. This is because such arrangements may have a significant impact on the financial statements and therefore require appropriate disclosures.

The Auditor Is Responsible for Auditing the Necessary Disclosures When