The Statement That BEST Expresses the Auditor's Responsibility with Respect

question 71

Multiple Choice

The statement that BEST expresses the auditor's responsibility with respect to events occurring between the balance sheet date and the end of the audit examination is that:

• A) the auditor has no responsibility for events occurring in the subsequent period unless these events affect transactions recorded on or before the balance sheet date.
• B) the auditor is fully responsible for events occurring in the subsequent period and should extend all detailed procedures through the last day of fieldwork.
• C) the auditor is responsible for determining that a proper cutoff has been made and performing a general review of events occurring in the subsequent period.
• D) the auditor's responsibility is to determine that a proper cutoff has been made and that transactions recorded on or before the balance sheet date actually occurred.

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Definitions:

Pregnant Mother

A woman in the state of carrying a developing embryo or fetus within her body.

Infant

An infant or newborn, generally younger than one year old.

Addicted

A condition characterized by an uncontrollable urge to continue taking a substance or engaging in an activity despite harmful consequences.

Nicotine

A potent chemical found in tobacco products that acts as a stimulant and can lead to addiction.