Explain how examining subsequent payments paid after the balance sheet date (or a cutoff date) is...

Explain how examining subsequent payments paid after the balance sheet date (or a cutoff date) is a useful test of the completeness of purchases and payables.

Expert Solution

Examining subsequent payments paid after the balance sheet date (or a cutoff date) become necessary sometimes because such payments paid are much in value and could not be ignored.
It can be a useful test of the completeness of purchases and payables as there can be certain purchases made after the balance sheet date.

Examination of actual stock available with the invoices made after the balance sheet date (or a cutoff date) will help in checking in completeness of purchases and playables.

Such examination will help in achieving the actual figures and the operating income can be fairly determined.

ekkarill92 answered 2 years ago

1. Type 1 subsequent events involve events that existed ___ the balance sheet date. (after, before,...

1. Type 1 subsequent events involve events that existed ___ the balance sheet date. (after, before, between, close to, near, on) 2. Type 1 subsequent events require ___ of the financial statements. (adjustment, consideration, disclosure, documentation, duplication) 3. Type 2 subsequent events come into existence ___ the balance sheet date. (after, before, between, close to, near, on) 4. Type 2 subsequent events occur after the balance sheet date but ___ the completion of fieldwork. (after, close to, near to, prior...

Discuss events after the balance sheet date

Auditors must be concerned with events that occur subsequent to the balance sheet date, because the...

Auditors must be concerned with events that occur subsequent to the balance sheet date, because the events may need to be reflected in the financial statements. a. Describe the two general types of subsequent events. (2 points) b. What is the auditors' responsibility with respect to detecting subsequent events? (2 points) c. Explain three audit procedures that are used by the auditors to search for subsequent events. (6 points)

Question: The auditor is required to review transactions and events after the balance date (subsequent events)...

Question: The auditor is required to review transactions and events after the balance date (subsequent events) to determine whether anything occurred that might affect the valuation or disclosure of items in the financial statements being audited. Require: Discuss the auditor’s responsibility for detecting subsequent events i. prior to the completion of the field work. ii. prior to signing the audit report. iii. between the date of the audit report and the issuance of the financial report.

Explain the expected changes of the main items in the balance of payments after Covid 19.

A subsequent event that provides additional information about a condition that existed at the balance sheet...

A subsequent event that provides additional information about a condition that existed at the balance sheet date is referred to as a(n): A. Revised disclosure B. Subsequent discovery of facts C. Type I subsequent event D. Type II subsequent event

How to calculate in excel? Profit after tax? Balance sheet: COCA-COLA CO (KO) CashFlowFlag BALANCE SHEET Fiscal...

How to calculate in excel? Profit after tax? Balance sheet: COCA-COLA CO (KO) CashFlowFlag BALANCE SHEET Fiscal year ends in December. USD in millions except per share data. 2015-12 2016-12 2017-12 2018-12 2019-12 Assets Current assets Cash Cash and cash equivalents 7309 8555 6006 8926 6480 Short-term investments 12591 13646 14669 7038 4695 Total cash 19900 22201 20675 15964 11175 Receivables 3941 3856 3667 3396 3971 Inventories 2902 2675 2655 2766 3379 Prepaid expenses 2752 2481 2000 1962 1886 Other current...

You are examining a company's balance sheet and find that it has total assets of $21,156,...

You are examining a company's balance sheet and find that it has total assets of $21,156, a cash balance of $2,424, inventory of $5,169, current liabilities of $6,341 and accounts receivable of $2,935. What is the company's net working capital? Multiple Choice $4,187 $1,763 $982 $6,151 $14,815

Q2 - (Balance of Payments) Explain where in the U.S. balance of payments an entry would...

Q2 - (Balance of Payments) Explain where in the U.S. balance of payments an entry would be recorded for each of the following: * A Hong Kong financier buys some U.S. corporate stock. * U.S. tourist in Paris buys some perfume to take home. * A Japanese company sells machinery to a pineapple company in Hawaii. * U.S. farmers gave food to starving children in Ethiopia. * The U.S. Treasury sells a bond to a Saudi Arabian prince. * A...

The Income Statement, Balance Sheet and Statement of Cash Flows are integral elements when examining the...

The Income Statement, Balance Sheet and Statement of Cash Flows are integral elements when examining the strength or weakness of an organization. How would you explain the correlation between these statements and what specific areas would you focus on when making an assessment of a company?

Question