question archive Integrated Audit Practice CaseSEVENTH EDITIONAssignment TENDiscussion Questions 1)What period is covered by the auditor's review for subsequent events? Give an example of a subsequent event that should result in disclosure, and a subsequent event that would require adjustment to the financial statements
Integrated Audit Practice CaseSEVENTH EDITIONAssignment TENDiscussion Questions 1)What period is covered by the auditor's review for subsequent events? Give an example of a subsequent event that should result in disclosure, and a subsequent event that would require adjustment to the financial statements
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Integrated Audit Practice CaseSEVENTH EDITIONAssignment TENDiscussion Questions
1)What period is covered by the auditor's review for subsequent events? Give an example
of a subsequent event that should result in disclosure, and a subsequent event that would
require adjustment to the financial statements.
2)Assume you learn of a subsequent event after the date of the audit report (end of audit
fieldwork) but before the audit report has been issued. How should you address this type
of subsequent event?
3)Your preliminary judgment of materiality was based on net income. Why is it necessary to
compare unadjusted misstatements to other bases of materiality? What should the auditor
do if the unadjusted misstatements exceed one or more materiality thresholds?
4)Why must the auditor review and obtain the client's approval of adjusting journal entries
before posting them to the trial balance? What should the auditor do if the client does not
agree with the proposed adjustments?
