• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/6

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

6 Cards in this Set

  • Front
  • Back

Subsequent Event: Type 1

Event that occurced after the cutoff however, impacts the finanical statements of the current period and requires adjusting the financials. Example, a material customer on account is going bankrupt. No longer able to collect AR. Adjust to Allowance for Doubtfull Accounts

Subsequent Event: Type 2

Events that come into existence soon after the balance sheet date that are significant in the future operations of the company. It should be brought to the users attention. This does not require adjusting the financials, but requires disclosure in the notes.

Audit Procedure 1

Obtain an understanding of management's procedures to ensure that subsequent events are identifed.

Audit Procedure 2

Inquire of managment (and those charged with governance) about whether subsequent events have occurred

Audit Procedure 3

Read available mintues of directors, stockholders, and appropriate committee meetings that have been held after the date of the finanical statements and inquire about matters discussed at any such meeting for which minutes are not yet available.

Audit Procedure 4

Read the company's latest subsequent interim finanical statments, if any