Explain the Responsibilities of the Auditor Regarding Subsequent Events

question 32

Essay

Explain the responsibilities of the auditor regarding subsequent events:
1.after reporting date, but before the audit report is signed,
2.after the audit report is signed, but before the financial statements are issued, and
3.after the financial statements are issued.

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Definitions:

Contributes Capital

The act of providing financial resources or assets to a business or investment with the expectation of gaining a return.

Limited Partnership

A business partnership with one or more general partners who manage the business and assume liability, and one or more limited partners who contribute capital and face limited liability.

General Partner

A type of owner in a partnership who has unlimited personal liability and who is actively involved in managing the business.

Tax Reasons

Considerations related to the management of tax liabilities and strategic financial planning to minimize taxes owed.