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

question 13

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 the:

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

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Definitions:

Infundibulum

A funnel-shaped structure; it can refer to part of the fallopian tube close to the ovary, or to a structure in the brain that connects the hypothalamus to the pituitary gland.

Equilibrium

The condition in which all acting influences are balanced or canceled by equal opposing forces, resulting in a stable system.

Endocrine System

The collection of glands that produce hormones to regulate processes such as growth, metabolism, and sexual function.

Metabolism

The sum of all chemical processes that occur within a living organism to maintain life, including anabolism and catabolism.