The Auditor's Responsibility with Respect to Events Occurring Between the Balance

question 72

Multiple Choice

The auditor's responsibility with respect to events occurring between the balance sheet date and the end of the audit examination is best expressed by which of the following statements?

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

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Definitions:

Testes

The primary male reproductive organs that produce sperm and testosterone.

Bulbourethral Glands

Small glands near the male urethra that produce a clear fluid that lubricates and neutralizes acidity in the urethra during sexual arousal.

Cowper's Glands

Small glands located on the sides of the urethra in the male reproductive system that produce a fluid to lubricate the urethra and neutralize its acidity.

Gynecomastia

A medical condition in males where there is an enlargement of the breast tissues.