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:

Units Purchased

This refers to the total quantity of goods or inventory bought by a company during a specific accounting period.

Ending Raw Materials

is the value of all raw materials that remain unused at the end of an accounting period, which will be used in future production processes.

Budgeted Materials Purchases

The projected amount of materials to be bought for production as planned within a budget period.

April 1 Inventory

The inventory on hand at the beginning of the company's fiscal quarter or year, typically recorded on the first day of April.