Which of the following statements, relating to the auditor's responsibilities regarding subsequent events, if any, is/are correct? (1) Auditors do not have a responsibility to perform procedures to identify subsequent events after the date of the auditor's report(2) Where a material adjusting subsequent event is identified after the financial statements are issued, but prior to approval by the shareholders, the auditor should includeja qualified opinion in their audit report if management refuses to adjust the financial statements for the event
Which of the following statements, relating to the auditor's responsibilities regarding subsequent events, if any, is/are correct? (1) Auditors do not have a responsibility to perform procedures to identify subsequent events after the date of the auditor's report(2) Where a material adjusting subsequent event is identified after the financial statements are issued, but prior to approval by the shareholders, the auditor should includeja qualified opinion in their audit report if management refuses to adjust the financial statements for the event
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following statements, relating to the auditor's responsibilities regarding subsequent events, if any, is/are correct? (1) Auditors do not have a responsibility to perform procedures to identify subsequent events after the date of the auditor's report(2) Where a material adjusting subsequent event is identified after the financial statements are issued, but prior to approval by the shareholders, the auditor should includeja qualified opinion in their audit report if management refuses to adjust the financial statements for the event
a. 1 only
b. Neither 1 nor 2
c. 2 only
d. Both 1 and 2
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