When Kelly Lake was training her staff about the auditor's responsibility for subsequent events she made the two following statements:
Which of the above statements, if any, is true?
A) (i) only
B) (ii) only
C) both (i) and (ii)
D) neither (i) nor (ii)

Question

Quizplus · Accepted Answer

Statement (i) is correct. The auditor has a responsibility to consider the impact of subsequent events on the financial statements. However, statement (ii) is incorrect. The auditor is not responsible for subsequent events that occur after the auditor's report is issued.

When Kelly Lake Was Training Her Staff About the Auditor's