ACCA AA · Chapter 12 · Question 2 of 9
Under ISA 560, what is the auditor's responsibility for subsequent events between the date of the financial statements and the date of the auditor's report?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To perform procedures designed to obtain sufficient appropriate evidence that all events requiring adjustment or disclosure have been identified
Explanation
In this period the auditor has an active duty to perform procedures such as enquiring of management, reading board minutes and reviewing the latest management accounts. After the auditor's report is dated, the duty becomes passive: there is no obligation to perform procedures, but the auditor must respond to facts that become known.
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