Unit 8 Assignment - Running Head Unit 8 Assignment 1 Unit 8...

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Running Head: Unit 8 Assignment 1 Unit 8 Assignment Ryan Tackett September 20, 2015 AC 410 Professor Beiser
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Unit 8 Assignment 2 Question 16-31 The auditor's opinion on the fairness of financial statements may be affected by subsequent events. Required: a. Define what is commonly referred to in auditing as a subsequent event, and describe the two general types of subsequent events. b. Identify those auditing procedures that the auditor should apply at or near the completion of fieldwork to disclose significant subsequent events. . A subsequent event occurs when an event happens after the date of the balance sheet but prior to the auditor’s report. FASB ASC 855 divides subsequent events into two broad categories: (1) those providing additional evidence about facts existing on or before the balance sheet date, and (2) those involving facts coming into existence subsequent to the balance sheet date (Whittington 636). The auditors should determine that proper cutoffs of cash receipts and disbursements and sales and purchases have been made, and they should examine data to aid in the evaluation of assets and liabilities as of the balance sheet date. In addition, the auditors should: Obtain an understanding of management's procedures to ensure that subsequent events are identified.
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