One, What is a "subsequent event" in audit process? Two, What procedures are performed during the...

One, What is a "subsequent event" in audit process?
Two, What procedures are performed during the subsequent period in an audit? In your logic, what are these procedures are intended for, as a financial reporting auditor?

Expert Solution

A subsequent event is an occasion that happens after a reporting duration, but before the financial statements for that period had been issued or are to be had to be issued.

Also, all auditing procedures are not carried out at the same time and some phases of an audit will be performed during the subsequent period, whereas other phases will be substantially completed on or before the balance-sheet date. As an audit approaches completion, the auditor will be concentrating on the unresolved auditing and reporting matters and he is not expected to be conducting a continuing review of those matters to which he has previously applied auditing procedures and reached satisfaction.

Certain specific procedures are applied to transactions occurring after the balance-sheet date such as (a) the examination of data to assure that proper cutoffs have been made and (b) the examination of data which provide information to aid the auditor in his evaluation of the assets and liabilities as of the balance-sheet date.

ekkarill92 answered 2 years ago

What audit procedures should the auditor perform to search for subsequent events ?

what is it meant by the term "subsequent event" How is a subsequent event treated in...

what is it meant by the term "subsequent event" How is a subsequent event treated in an entity's financial reports? Give an example of something that would be a subsequent event.

Describe two types of substantive analytical procedures often performed in the audit of the sales and...

Describe two types of substantive analytical procedures often performed in the audit of the sales and collection cycle and describe how they might indicate a possible misstatement in the financial statements. Identify and select the two types of substantive analytical procedures and then choose the possible misstatement in the financial statements. compare aging categories as a percentage of net income with previous years compare bad debt expense as a percentage of net sales with precvious years compare gross margin percentage...

4. Define 'subsequent activities'. Describe the audit procedures that the auditor would perform to detect subsequent...

4. Define 'subsequent activities'. Describe the audit procedures that the auditor would perform to detect subsequent events. Explain Type 1 and Type 2 events. 5. Distinguish between the securities act of 1933 and the securities exchange act of 1934. Why is it easier for a Plantiff to sue an auditor under the securities act of 1933?

What is the difference between a "subsequent event" and the "subsequent discovery of facts" in an...

What is the difference between a "subsequent event" and the "subsequent discovery of facts" in an audit? What are the auditor's responsibilities for each?

1. Which of the following audit procedures are usually performed to audit the allowance for doubtful...

1. Which of the following audit procedures are usually performed to audit the allowance for doubtful accounts? A) Test the aging of the accounts receivable balances B) Compare the aging of the accounts receivable balance to prior years C) Compare the ratio of the allowance for doubtful accounts to the accounts receivable balance to previous years D) All of the above 2. The accounts payable accounting clerk recorded the same purchase twice. Which of the following tests would most likely...

7-29 - The following audit procedures were performed in the audit of INVENTORY to satisfy specific...

7-29 - The following audit procedures were performed in the audit of INVENTORY to satisfy specific balance-related audit objectives (management assertions). The audit procedures assume that the auditor has obtained the inventory count sheets that list the client’s inventory. The general balance-related audit objectives from Chapter 6 are also included. Audit Procedures Select a sample of inventory items in the factory warehouse and trace each item tothe inventory count sheets to determine if it has been included and if the...

Which of the following audit procedures most likely will involve sampling? A. Risk assessment procedures performed...

Which of the following audit procedures most likely will involve sampling? A. Risk assessment procedures performed to obtain an understanding of internal control. B. Tests of automated application controls when effective information technology general controls are present. C. Analyses of controls to determine the appropriate segregation of duties. D. Testing of process for approval of credit to customers for sales on account.

Briefly describe the six procedures performed during fieldwork

What are the general types of procedures performed during a review of the quarterly financial statements...

What are the general types of procedures performed during a review of the quarterly financial statements of a company that has audits of its annual financial statement?

Question