CAF-8 · Chapter 15 · Question 3 of 10
During the period between the balance sheet date and the date the audit report is signed, what is the auditor's responsibility regarding subsequent events?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The auditor must perform active procedures (e.g., reading minutes, inquiry) to obtain evidence that all events requiring adjustment or disclosure have been identified.
Explanation
Up to the date of the audit report, the auditor has an 'active' duty to design and perform specific procedures (reading minutes, reviewing interim financials, inquiring) to identify any material subsequent events.
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