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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faee78b46-58df-4273-9bbd-2926e8defdfb%2Fb3678ab7-d4cd-45e8-a83b-83c8ab9eaa34%2Ftcr7it8_processed.png&w=3840&q=75)
Transcribed Image Text: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.
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