Audit-subsequent events procedures

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Reference no: EM1355175

The period between the balance sheet date and the date of the auditor report is called the subsequent period. Audit procedures performed in this period are called the subsequent events review.

The significance of the audit report date is that it is the cutoff point for an auditor's responsibility to be informed about events and transactions that occur after the date of the financial statements but that have a material effect on those statements.

Required:

What are the two types of subsequent events in terms of their effects on the financial statements? Give an example of each type of subsequent events?

List the type of procedures performed during a subsequent events review.

Reference no: EM1355175

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