Adjust Footnote Settlement Gratuito
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What is the difference between a Type 1 and a Type 2 subsequent event?
There are generally two types of subsequent events. 1)The first is a recognized event whereas the second is a non-recognized event. Recognized or type 1 subsequent events are typically events that occurred at the financial statement date. But that may have concluded after the year-end.
What is a Type 1 subsequent event?
Recognized or type 1 subsequent events are typically events that occurred at the financial statement date.
What is considered a subsequent event?
A subsequent event is an event that occurs after a reporting period, but before the financial statements for that period have been issued or are available to be issued. Depending on the situation, such events may or may not require disclosure in an organization's financial statements.
What is a non recognized subsequent event?
Non-recognized subsequent events do not require adjustments to the financial statements. Such events are those that relate to financial conditions that did not exist on the balance sheet date but arose after the date. ... Disclosure might require reissuance of financial statements.
What is subsequent audit?
ISA 560, Subsequent Events outlines the auditor's responsibility in relation to subsequent events. For the purposes of ISA 560, subsequent events are those events that occur between the reporting date and the date of approval of the financial statements and the signing of the auditor's report.
What do you understand by events in auditing?
Subsequent events according to auditing are the events that occur between the date of financial statements i.e. the END OF REPORTING PERIOD and the DATE OF AUDITOR'S REPORT and also the facts that are discovered AFTER THE AUDITOR'S REPORT has been issued.
What is dual dating in auditing?
dual date If a major event comes to the auditor's attention between the report date and issuance of the report, the financial statements may include the event as an adjustment or disclosure. The auditor dual dates the audit report (as of the end of work paper review, except footnote XX, which is dated later).
When should the audit report be dated?
.01 The auditor should date the audit report no earlier than the date on which the auditor has obtained sufficient appropriate evidence to support the auditor's opinion. Paragraph .05 describes the procedure to be followed when a subsequent event occurring after the report date is disclosed in the financial statements.
Why is it important to date audit work papers?
Working papers are important because they: are necessary for audit quality control purposes. ... provide evidence that an effective audit has been carried out. Increase the economy, efficiency, and effectiveness of the audit.
What subsequent events require disclosure?
Subsequent events' definition. A subsequent event is an event that occurs after a reporting period, but before the financial statements for that period have been issued or are available to be issued. Depending on the situation, such events may or may not require disclosure in an organization's financial statements.
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