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Q1. Why should the auditor review transactions and events that occurred after the balance sheet date? Does this responsibility extend indefinitely? What are the types of subsequent events that must be evaluated by the auditor and what actions should be taken for each type?
Q2. What are contingent liabilities? What is the auditor's objective in reviewing contingent liabilities? Highlight some of the audit procedures commonly used to research for contingent liabilities.
prepare short answers to each of the following questions. where possible refer to the online course materials or the
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