L19 Notes_Part_10 - report date completion issue date...

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Subsequent Events: Examples a. Direct Effect i. bankruptcy ii. settlement of litigation iii. disposal of equipment below cost iv. sale of investment below cost b. Indirect Effect i. decline in market value ii. issuance of bonds or equity securities iii. fire loss iv. government edict makes inventory worthless
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If auditors learn of a subsequent event during this period, they are responsible for its disclosure. 12/31 2/14 2/28 balance sheet field work
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Unformatted text preview: report date completion issue date period under audit subsequent events period The auditors then have two options: - expand all subsequent events tests to the date of the event and change the report date to the date of the event (e.g., 2/21) - restrict testing only to matters relating to the new event and dual-date the report: Taylor & Tower, CAs February 14, 20x1, except for Note 3, as to which the date is February 21, 20x1...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L19 Notes_Part_10 - report date completion issue date...

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