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

question 69

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 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'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.
• C)The auditor is fully responsible for events occurring in the subsequent period and should extend all detailed procedures through the last day of field work.
• D)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.

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Definitions:

Homogeneous

Consisting of parts or elements that are all the same or similar in nature.

Heterogeneous

Composed of parts or elements that are different from each other, referring to diversity or variety within a group or structure.

Ingroup

Ingroup refers to a social group to which a person psychologically identifies as being a member.

Outgroup

A social group to which an individual does not identify or belong, often viewed with bias or prejudice.