Question

An auditor has the responsibility to actively search for subsequent events that occur subsequent to the

A.

balance sheet​ date, but prior to the audit report.

B.

date of the​ auditor's report.

C.

balance sheet date.

D.

date of the management representation letter.

Answer 1

A subsequent event is an event that occurs after a reporting period, but before the financial statements for that period have been issued or are available to be issued.

The auditor should perform audit procedures designed to obtain sufficient appropriate audit evidence that all events up to the date of the auditor's report that may require adjustment of, or disclosure in, the financial statements have been identified.

When the auditor becomes aware of events upto the date of Audit Report which materially affect the financial statements, the auditor should consider whether such events are properly accounted for and adequately disclosed in the financial statements.

Hence the Auditor has the responsibility to actively search for subsequent events that occur subsequent to the balance sheet​ date, but prior to the audit report.

SO OPTION A IS THE CORRECT ANSWER.