If an Auditor Dates the Auditor's Report on Financial Statements

question 20

Multiple Choice

If an auditor dates the auditor's report on financial statements for the year ended December 31, 2013, as of February 10, 2014, except for Note J, as to which the date is March 3, 2014, the auditor is acknowledging responsibility to actively search for and ensure proper handling by management of:

• A)all subsequent events occurring through March 3, 2014.
• B)all subsequent events occurring through February 10, 2014.
• C)all subsequent events occurring through February 10, 2014 and the specific subsequent event referred to in Note J through March 3, 2014.
• D)only the specific subsequent event referred to in Note J as of March 3, 2014.

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Definitions:

T-test

A statistical test used to compare the means of two groups to determine if they come from the same population.

Alpha

A predetermined threshold in hypothesis testing that defines the probability of making a Type I Error, usually set at 0.05, indicating a 5% risk of false positive.

Null Hypothesis

A hypothesis that suggests there is no significant difference or effect, serving as a default position until evidence suggests otherwise.

Statistical Significance

A determination that a relationship between variables or a difference between groups is likely not due to chance, based on a predetermined threshold.