Subsequent Events for Which the Auditor Has a Responsibility to Actively

question 38

Multiple Choice

Subsequent events for which the auditor has a responsibility to actively search are defined as events that occur subsequent to the

• A) Balance sheet date.
• B) Date of the auditor's report.
• C) Balance sheet date but prior to the date of the auditor's report.
• D) Date of the auditor's report and concern contingencies that are not reflected in the financial statements.

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Definitions:

Combinations

A method of counting that determines the number of possible arrangements in a collection without regard to the order of the elements.

Experimental Outcomes

Possible results or occurrences that can happen in an experiment, each outcome having a certain probability of occurring.

Objects

Entities, real or abstract, about which data can be collected and analyzed in various contexts, including programming, mathematics, and everyday situations.

Mutually Exclusive Events

Events that have no sample points in common; that is, A ∩ B is empty and P(A ∩ B) = 0.