Subsequent Events

Statements on Auditing Standards consequent Events Tiffany Neal Franklin University Purpose The purpose of the Statements of Auditing Standards is to set the exemplar of the auditors business that apply to sequent way outs that whitethorn wee occurred (Auditing Standards Board, 1995). A subsequent answer(s) is the transaction that whitethorn occur afterwards a counterpoise-sheet see to it, solely is an way out that is prior to an return of the financial statement. These transactions may have a bodily effect on the financial statements and can require more than limitings or a disclosure that may need to be added in the statements. Subsequent Events was amend and effective September 2002. by the Statement on Auditing Standards no 98 (American Institute of CPAs, 2012). there are two types of Subsequent events that may require promote evaluation by an strong-minded auditor and consideration by attention. The first type of eve nt supplies additional rise in regards to the conditions that pre-exist at the date that is stated on the balance sheet. Which may affect the estimates that are an inbred process of preparing the financial statement.

The knowledge that is getable in the beginning the issuance of the financial statements needs to be used by management for further evaluation for estimates that were based. An utilisation of this type is a guests financial conditions play into bankruptcy prior to the balance-sheet date would be a squeeze that the conditions existed at the balance-sheet date, and calling for an adjustment of the financial statement before issuance (America! n Institute of CPAs, 2012). The s type of subsequent event are those that give evidence in the conditions that were not available on the date the balance sheet reported just were there prior to that date. This event does not need to be adjusted on the financial statement. However, the nature of some of the events may need to be added to a disclosure so that the financial...If you fate to get a in force(p) essay, order it on our website: OrderCustomPaper.com

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