Write a 2 - 3 page paper that addresses the following:
•The types of subsequent events and their importance to the audit
•The procedures auditors cannot perform before the end of the audit
•The different types of audit reports and the conditions under which each is issued
Your paper should be in APA format and cite all references used.
In accordance with BrainMass rules this is not a hand in ready paper but only guidance.
There are two types of subsequent events that should be given importance by the management. The first type of subsequent event is one that gives additional evidence relating to the condition that existed at the date of the balance sheet and affects the estimates interest in the process of preparing financial statements. An example is the loss of uncollectable trade account. The second type of subsequent events gives evidence in relation to conditions that did not exist at the date of the balance sheet being reported on but arose subsequent to that date (Knapp. M, 2011). These events should not result in adjustment of the financial statements. One example of this type of subsequent event is the acquisition of company. Another example is loss of a factory because of ...
This solution explains subsequent events and the duties of auditors after the auditing period. . The sources used are also included in the solution.