An Auditor's Decision Concerning Whether or not to "Dual-Date" the Audit

question 28

Multiple Choice

An auditor's decision concerning whether or not to "dual-date" the audit report is based upon the auditor's willingness to:

• A)Extend auditing procedures.
• B)Accept responsibility for year-end adjusting entries.
• C)Permit inclusion of a note captioned: event (unaudited)subsequent to the date of the auditor's report.
• D)Assume responsibility for resolving all events subsequent to the issuance of the auditor's report.

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Definitions:

Post-Closing Trial Balance

A list of all accounts and their balances after closing entries are made, showing that debits equal credits.

Adjusting Entries

Entries recorded in financial journals at the conclusion of an accounting period for the purpose of assigning earnings and expenditures to their rightful period.

Work Sheet

A document or tool used in accounting to gather information and perform calculations for preparing financial statements and other reports.

Retained Earnings

The portion of a company's profits not distributed as dividends but retained for reinvestment in the business or to pay off debt.