Read the case. Then answer the questions based on it. BACKGROUND: The term subsequent event refers...

Read the case. Then answer the questions based on it.

BACKGROUND: The term subsequent event refers to an event that occurs after the date of the audited balance sheet but prior to the date of the auditors' report. Subsequent events can be divided into two broad categories. The first are those that provide additional evidence about facts that existed either on or before the balance sheet date (Type 1 events). The second are those that involve facts that came into existence after the balance sheet date (Type 2 events). Type 1 events require adjustment to the financial statements while Type 2 events only require financial statement disclosure. Dillon & Company CPAs are auditing the financial statements of PDQ Manufacturing as of December 31, 2009. During the fieldwork of its audit (March 2010), the auditors noted the following situations: A major customer who owed PDQ $10,000 in accounts receivable (a material amount) filed for Chapter 7 bankruptcy. A warehouse where the customer stored some of its inventory for resale had a fire. Estimated damage could not yet be quantified. In addition, the company's board treasurer was killed in a tragic plane crash. Dillon & Company is now ready to issue its audit opinion.

1. What should Dillon & Company CPAs do as a result of the customer bankruptcy?

2. What type of subsequent event is the death of the board treasurer?

3. Does the death of the board treasurer require an adjustment to the 12/31/09 financial statements?

4. What should Dillon & Company CPAs do to adjust the financial statements for the fire in the warehouse?

Expert Solution

ekkarill92 answered 1 year ago

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.

Please read the case and answer the following questions STATE UNIVERSITY ACADEMIC DEPARTMENT Background The Internal...

Please read the case and answer the following questions STATE UNIVERSITY ACADEMIC DEPARTMENT Background The Internal Audit Department of a state-supported university was in the process of performing a scheduled audit of a school within the university that had several academic departments. The internal auditor developed an audit program, which included auditing academic departments within the school having potentially higher risk levels, based on factors such as funding levels, number of funding sources, and number of students. Internal Audit performed...

Read the assessment background below and answer the questions that follow Assessment Background: You are the...

Read the assessment background below and answer the questions that follow Assessment Background: You are the nurse manager at a skilled nursing facility. There has been tremendous nurse burnout and turnover at your facility. Next Tuesday, the CEO and CFO of your organization are coming to assess the situation. You must explain to these stakeholders the current trends for nursing leadership related to nursing recruitment, retention, and engagement in the workplace. The goal of your presentation is to help influence...

Read the following Case Study and answer the questions based on the information. History of Present...

Read the following Case Study and answer the questions based on the information. History of Present Illness: The patient has been noted to have some bright, red bleeding intermittently for approximately 8 months, initially presumable of a hemorrhoidal basis. She recently has had intensification of the rectal bleeding but no weight loss, anorexia, or obstructive pain. No significant diarrhea or constipation. Some low back pain, probably unrelated. Recent colonoscopy by Dr. Scoma revealed a large sessile (attached by a broad...

Please read the case and answer the questions thank you Groupon’s business model is based on...

Please read the case and answer the questions thank you Groupon’s business model is based on the theory that everyone loves a great deal. Groupon is a popular “deal of the day” website offering discounted gift certificates usable at local or national companies. Each day, Groupon e-mails its subscribers discounted offers for goods and services that are targeted by location and personal preferences.Customers purchase Groupons through Groupon’s website or mobile apps and redeem them with affiliated merchants. The discounts are...

Read the following case study and answer the questions. &

Read the following case study and answer the questions. 1*6=6 RBC’s Youth Marketing Strategy As stated above, the marketing strategy consists of selecting a target market and designing the marketing mix of your product, price, place, and promotion to appeal to your competitors. RBC, Canada’s largest bank, obviously has many different target markets, which results in the key managing different marketing mixes. One key target market for the bank is university students and recent graduates. The group is particularly...

Read the article “The Case for Evidence-Based Human Capital Management” and answer the following questions. Discuss...

Read the article “The Case for Evidence-Based Human Capital Management” and answer the following questions. Discuss three (3) of the seven (7) strategies identified in the article for leveraging talent

Please read the background information and answer the following questions Background: Country Table Potato Chip Company...

Please read the background information and answer the following questions Background: Country Table Potato Chip Company is a small, privately owned company that produces a limited line of snack foods sold in a three-state range including most of Illinois, Indiana, and Iowa. The company has been in business for 57 years and was started by Franklin Brewster. Frank developed a faithful following for his chips as a result of a cooking process that sealed in flavor. The brand name is...

Q 2) Read the case and answer the questions below. &

Q 2) Read the case and answer the questions below. (Marks: 10) Case: Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered in Toyota, Aichi, Japan. Recently a conflict arises from the management styles of two managers, Ralph and George, who head two different departments in the same organization. Ralph’s problem with George is that the latter is taking staff from his department without his approval. On the other hand, George feels that he is doing the right thing...

Read the case and answer the following questions. 30 Mark

Read the case and answer the following questions. 30 Marks Richard Dana Associates (RDA) was brought in by the owners of a family-owned business with complex relationship issues at a time preceding an anticipated leadership transition. Following individual and group coaching sessions, RDA was able to help the leadership separate personal issues, and codify practices through formal policies to allow the leadership group to focus on business issues without personal complications. At the end of RDA's engagement, the client was...

Question