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 type of the auditors business that apply to sequent way outs that whitethorn conduct occurred (Auditing Standards Board, 1995). A subsequent answer(s) is the transaction that whitethorn occur after a counterpoise-sheet see to it, solely is an subject that is prior to an consequence of the financial statement. These transactions whitethorn have a textile effect on the financial statements and can require more(prenominal) 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 gain ground evaluation by an strong-minded auditor and consideration by attention. The first type of event 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 selective information that is visible(prenominal) forwards the issuance of the financial statements needs to be used by management for further evaluation for estimates that were based. An model of this type is a guests financial conditions go into bankruptcy prior to the balance-sheet date would be a indicate that the conditions existed at the balance-sheet date, and callin g for an adjustment of the financial stateme! nt before issuance (American 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 further 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 requisite to get a in force(p) essay, order it on our website: OrderCustomPaper.com

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