M9

Question 1

Auditor’s responsibilities for subsequent events (PRIME)

Answer 1

Post balance sheet transactions (stock issuance/LT debt )
Representation letter
Inquiry
Minutes
Examine (interim F/S)

Question 2

What date does the auditor’s responsibility extend too

Answer 2

Auditor report date

Question 3

what actions should an auditor take if they determine there is information they should have known about when a report is issued

Answer 3

1. determine whether there are persons likely to rely on the F/S
2. Contact mgmt
3. Advise the f/s be revised

Question 4

What auditor action should take place if mgmt refuses to make requested changes DAR

Answer 4

Disassociate, alert agencies, alert relying parties