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:

Partial Payment

A payment that is made towards a debt or obligation that is less than the full amount owed at that time.

Discount Date

The specified date before which a payment can be made on an invoice to receive a discount for early payment.

Due Date

The specified date by which a task, assignment, or payment should be completed or submitted.

Complement Rate

A measure used in calculations where it, along with another specified rate, sums up to a predetermined total, serving as a critical component in various analytical processes.