An auditor issues a report dated 2/12/Year 2 on financial statements for the year ended 12/31/Year 1. Which best describes the auditor's responsibility for an event occurring on 2/1/Year 2 and an event occurring on 3/1/Year 2? A. The auditor has an active responsibility to investigate both events. B. The auditor has an active responsibility to investigate the 2/1/Year 2 event, but no responsibility concerning the 3/1/Year 2 event. OC. The auditor has an active responsibility to investigate the 2/1/Year 2 event, and must also consider the effect of the 3/1/Year 2 event if it comes to his/her attention. O D. The auditor has no responsibility for either event, since both occur after the date of the financial statements.

An auditor issues a report dated 2/12/Year 2 on financial statements for the year ended 12/31/Year 1. Which best describes the auditor's responsibility for an event occurring on 2/1/Year 2 and an event occurring on 3/1/Year 2? A. The auditor has an active responsibility to investigate both events. B. The auditor has an active responsibility to investigate the 2/1/Year 2 event, but no responsibility concerning the 3/1/Year 2 event. OC. The auditor has an active responsibility to investigate the 2/1/Year 2 event, and must also consider the effect of the 3/1/Year 2 event if it comes to his/her attention. O D. The auditor has no responsibility for either event, since both occur after the date of the financial statements.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The subsequent period in an audit is the time extending from the balance sheet date to the date of…

Q: The auditor is required to prepare audit documentation sufficient to enable an experienced auditor,…

A: Audit documentation is the principal record of auditing procedures applied, evidence obtained, and…

Q: A CPA audits the financial statements of an issuer. Which statement relating to CAMs is TRUE? a. If…

A: Critical Audit Matters which is also written as CAMs are the matters which arises from the audit and…

Q: S1: Analytical review procedures is required as an evidence-gathering substantive test procedure,…

A: Answer: S1: Analytical review procedures is required as an evidence-gathering substantive test…

Q: When comparative financial statements are presented but the predecessor auditor's report is not…

A: There are certain duty and responsibility of auditor that is sufficient and appropriate audit…

Q: In an audit in accordance with generally accepted auditing standards, the auditors must test…

A: In accordance with GAAS, the auditor must perform test compliance as part of risk assessment…

Q: 8. An auditor should be aware of subsequent event that provide evidence concerning conditions that…

A: There are two question and both are separate, as per the guidelines first question has been answered…

Q: hich of the following is most likely to be included in a public company financial statement audit…

A: Audit report is a written document which is written by the auditor. An auditor is an independent…

Q: Briefly explain four distinct specific audit procedures excluding discussion that should be…

A: Answer

Q: Select the necessary words from the list of possibilities to complete the following statements. 1.…

A: There were two types of audit risks that auditor should assess before conducting an audit. Inherent…

Q: The date of the auditor's report I. Should not be earlier than the date the financial statements…

A: The correct option is option D - I, II and III

Q: The auditors have determined that each of the following objectives will be a part of the audit of…

A: The audit of different items contained in the financial statements through appropriate audit…

Q: Although the scope of audits of recipients of federal financial assistance in accordancewith federal…

A: Answer - Option(3) The auditor should obtain written management representations that the…

Q: The audit reporting requirements for comparatives discuss the following I. Prior period financial…

A: The audit reporting requirements for comparatives discuss the following: 1. If the prior financial…

Q: An auditor is likely to perform each of the below procedures to obtain evidence regarding the…

A: Audit Contrary to unfavorable opinions, scope restrictions or the presence of significant…

Q: Identify major activities performed by auditors in completing the substantive procedures following…

A: Auditors are required to perform several substantive procedures following the date of financial…

Q: Before issuing a report on the compilation of financial statements of a non-public entity, the…

A: Explanation of Assurance Services:Assurance services are professional services provided by certified…

Q: issuance of a written report. Required: a. What is the purpose of the. auditors' opinion and report?…

A: The auditor's report contains either an opinion on the financial statements., taken as a whole, or…

Question

An auditor issues a report dated 2/12/Year 2 on financial statements for the year ended 12/31/Year 1. Which best describes the
auditor's responsibility for an event occurring on 2/1/Year 2 and an event occurring on 3/1/Year 27
A. The auditor has an active responsibility to investigate both events.
B. The auditor has an active responsibility to investigate the 2/1/Year 2 event, but no responsibility concerning the
3/1/Year 2 event.
C. The auditor has an active responsibility to investigate the 2/1/Year 2 event, and must also consider the effect of the
3/1/Year 2 event if it comes to his/her attention.
D. The auditor has no responsibility for either event, since both occur after the date of the financial statements.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduce auditor's responsibility

VIEW

Step 2: Explain the correct option

VIEW

Step 3: Explain the incorrect options

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

As of the end of the fiscal period under audit, the auditor will request a special kind of confirmation, or written representation, from the client's attorneyls). This representation is commonly referred to as OA a lawyer's letter. OB an attorney's representation letter. OC neither of the preceding OD. both of the preceding
The audit report date on a standard unmodified opinion audit report indicates A. the last day of the fiscal period. B. the last day of the auditor's responsibility for the review of significant events that occurred after the date of the financial statements. O C. the date on which the financial statements were filed with the Securities and Exchange Commission. D. the last date on which users may institute a lawsuit against either the client or the auditor.
The standard unqualified opinion based on the audit of a public company's financial statements includes a. A discussion of Key Audit Matters if KAMs are discovered. b. A reference to Key Audit Matters if no KAMs are discovered. c. A statement that the CPA firm is registered with the AICPA. d. An indication of how long the firm has served as the company's auditors. e. A Basis for Opinion section preceding the Opinion of Financial Statements section.
When financial statements are presented in comparative form and another firm audited the prior years’ financial statements (but the other firm’s report is not presented with the financial statements), the auditors’ report on the current-year financial statements shoulda. Disclaim an opinion on the prior years’ financial statements.b. Not refer to the prior years’ financial statements.c. Refer to any procedures performed by the current auditor to verify the opinion on the prior years’ financial statements.d. Refer to the report and type of opinion issued by the other firm on the prior years’ financial statements.
Who is the auditor for Target? What type of opinion are they giving on Target’s financial statements? (page 32) Refer to “Types of Auditor’s Opinions document.