Milton Green, CPA, is auditing the financial statements of Taylor Corporation for the year ended December 31, 2003. Green plans to complete the fieldwork and sign the auditor’s report about March 10, 2004. He is concerned about events and transactions occurring after December 31, 2003, that may affect the 2003 financial statements.

Required:

a. What are the general types of subsequent events that require Green’s consideration and evaluation?

b. What are the auditing procedures Green should consider performing to gather evidence concerning subsequent events?