Auditors have a responsibility to consider subsequent events that occur after the date of the financial statements but before the audit report's issuance. Subsequent events are those events or transactions that provide additional evidence about conditions that existed at the date of the financial statements and may require adjustments or disclosures in the financial statements. Auditors are required to perform procedures to identify and evaluate subsequent events that may impact the financial statements' fairness and accuracy. This includes reviewing minutes of meetings, correspondence with legal counsel, and inquiries with management regarding events or transactions that occurred after the financial statement date but before the audit report's issuance. If auditors identify subsequent events that require adjustments or disclosures, they must ensure that these are appropriately reflected in the financial statements or disclosed in the notes to the financial statements. Objective Question: What is the auditor's responsibility regarding subsequent events in an audit engagement? a) Ignore subsequent events as they do not impact the financial statements. b) Perform procedures to identify and evaluate subsequent events that may impact the financial statements. c) Rely solely on management's representation regarding subsequent events. d) Issue the audit report without considering subsequent events.