( Subsequent events ) Green, CPA, is auditing the financial statements of Taylor Corporation for the year ended December 31, 20X1. Green plans to complete the fieldwork and sign the auditor\'s report about May 10, 20X2. Green is concerned about events and transactions occurring after December 31, 20X1, that may affect the 20X1 financial statements.
Required
Solution
a. What are the general types of subsequent events that require Green\'s consideration and evaluation?
Answer:
There are two types of subsequent event:
2. events that provide evidence with respect to conditions that did not exist at the date of the balance sheet being reported on but arose subsequent to that date.
b. What are the auditing procedures Green should consider performing to gather evidence concerning subsequent events?
The auditor should perform audit procedures designed to obtain sufficient appropriate audit evidence that all events up to the dat of the auditor\'s report that may require adjustment of, or disclosure in, the financial statements have been identified.
CONDITIONS THAT EXISTED AT THE DATE OF THE BALANCE SHEET AND EVENTS OCCURRING UP TO THE DATE O THE AUDITOR\'S REPORT:
The auditor is required to perform following audit procedues:
FACTS DISCOVERED AFTER THE DATE OF THE AUDITOR\'S REPORT BUT BEFORE THE DATE THE FINANCIAL STATEMENTS ARE ISSUED:
The auditor does not have any responsibility to perform audit procedures or make inquiry regarding the financial statements after the date of the auditor\'s report. During the period from the date of the auditor\'s report to the date the financial statements are issued, the responsibility to inform the auditor of facts which may affect the financial statements rest with the management,
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(Subsequent events) Green- CPA- is auditing the financial statements o.docx
1. ( Subsequent events ) Green, CPA, is auditing the financial statements of Taylor Corporation
for the year ended December 31, 20X1. Green plans to complete the fieldwork and sign the
auditor's report about May 10, 20X2. Green is concerned about events and transactions
occurring after December 31, 20X1, that may affect the 20X1 financial statements.
Required
19-
1
( Subsequent events ) Green, CPA, is auditing the financial statements of Taylor
Corporation for the year ended December 31, 20X1. Green plans to complete the fieldwork
and sign the auditor's report about May 10, 20X2. Green is concerned about events and
transactions occurring after December 31, 20X1, that may affect the 20X1 financial
statements.
Required
1. What are the general types of subsequent events that require Green's consideration
and evaluation?
2. What are the auditing procedures Green should consider performing to gather
evidence concerning subsequent events?
Solution
a. What are the general types of subsequent events that require Green's consideration and
evaluation?
Answer:
There are two types of subsequent event:
2. events that provide evidence with respect to conditions that did not exist at the date of the
balance sheet being reported on but arose subsequent to that date.
b. What are the auditing procedures Green should consider performing to gather evidence
concerning subsequent events?
2. The auditor should perform audit procedures designed to obtain sufficient appropriate audit
evidence that all events up to the dat of the auditor's report that may require adjustment of, or
disclosure in, the financial statements have been identified.
CONDITIONS THAT EXISTED AT THE DATE OF THE BALANCE SHEET AND
EVENTS OCCURRING UP TO THE DATE O THE AUDITOR'S REPORT:
The auditor is required to perform following audit procedues:
FACTS DISCOVERED AFTER THE DATE OF THE AUDITOR'S REPORT BUT
BEFORE THE DATE THE FINANCIAL STATEMENTS ARE ISSUED:
The auditor does not have any responsibility to perform audit procedures or make inquiry
regarding the financial statements after the date of the auditor's report. During the period from
the date of the auditor's report to the date the financial statements are issued, the responsibility
to inform the auditor of facts which may affect the financial statements rest with the
management,
