Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events quizlet?

If an auditor dates the auditor's report on financial statements for the year ended December 31, 2013, as of February 10, 2014, except for Note J, as to which the date is March 3, 2014, the auditor is acknowledging responsibility to actively search for and ensure proper handling by management of:
A) all subsequent events occurring through March 3, 2014.
B) all subsequent events occurring through February 10, 2014.
C) all subsequent events occurring through February 10, 2014 and the specific subsequent event referred to in Note J through March 3, 2014.
D) only the specific subsequent event referred to in Note J as of March 3, 2014.

Recommended textbook solutions

Financial Accounting

10th EditionCharles T. Horngren, C William Thomas, Walter T. Harrison Jr.

928 solutions

Wilson, CPA, obtained sufficient appropriate audit evidence to render an opinion on Abco's December 31, Year 1, financial statements on March 6, Year 2. A subsequent event requiring adjustment to the Year 1 financial statements occurred on April 10, Year 2. Wilson decides not to dual date the report and completes the extended audit procedures for subsequent events on April 24, Year 2. If the adjustment is made without disclosure of the event, Wilson's report ordinarily should be dated:

a. April 24, Year 2.
b. March 6, Year 2.
c. April 10, Year 2.
d. Using dual dating.

On February 17, Year 2, a company had a fire that destroyed a plant. The building and equipment had a net carrying amount of $550,000 as of December 31, Year 1. The company anticipates that insurance proceeds of $300,000 will be received. The audit of the financial statements dated December 31, Year 1, was completed February 25, Year 2. How should the fire be reported in the financial statements for the year ended December 31, Year 1?

a. The loss of $250,000 should be recorded as of December 31, Year 1, and disclosed in the notes to the financial statements.
b. The December 31, Year 1, financial statements should disclose the effect of the fire with no financial statement adjustment.
c. The value of the building and equipment should be adjusted to $250,000 as of December 31, Year 1, and the adjustment disclosed.
d. The December 31, Year 1, financial statements should be adjusted without disclosure.

Karr has audited the financial statements of Lurch Corporation for the year ended December 31, 20X4 Although Karr's field work was completed on February 27, 20X5, Karr's audit report was dated February 28, 20X5, and was received by the management of Lurch on March 5, 20X5. On April 4, 20X5, the management of Lurch asked Karr to approve inclusion of this report in their annual report to stockholders which will include unaudited financial statements for the first quarter ended March 31, 20X5. Karr approved of the inclusion of this auditor's report in the annual report to stockholders. Under the circumstances Karr is responsible for inquiring as to subsequent events occurring through

a. February 28, 20X5.
b. April 4, 20X5.
c. March 31, 20X5.
d. February 27, 20X5.

Recommended textbook solutions

Glencoe Accounting: First Year Course

1st EditionGlencoe McGraw-Hill

548 solutions

Horngren's Financial & Managerial Accounting

6th EditionBrenda L Mattison, Ella Mae Matsumura, Tracie Miller-Nobles

2,205 solutions

Financial Accounting

5th EditionDavid Spiceland, Don Herrmann, Wayne Thomas

1,323 solutions

Accounting: What the Numbers Mean

10th EditionDavid H Marshall, Wayne W McManus

658 solutions

Which of the following procedures would Auditors most likely perform to obtain evidence about the occurrence of subsequent events?

Which of the following procedures should an auditor perform regarding subsequent events?

Which of the following procedures would an auditor most likely perform?

What procedures will the auditor use to obtain audit evidence?