Subsequent Events Flashcards
(3 cards)
1
Q
what is an adjusting event
A
provides evidence about conditions that existed at balance date
2
Q
what is a non-adjusting event
A
related to events after balance date (e.g. new litigation) - disclosed but not adjusted
3
Q
audit procedures for subsequent events
A
review board minutes, mgmt reports, budgets
enquire with mgmt and lawyers
