You are in the process of "winding up" the field work on Charleston Stove Corporation, a company engaged in the manufacture and sale of kerosene space-heating stoves. The company had total assets at the balance sheet date of December 31, 19X9, of \($4\) million and a net profit for the year then ended (after deducting federal and state income tax provisions) of \($285,000.\) The principal records of the company are a general ledger, cash receipts record, voucher register, sales register, check register, and general journal. Financial statements are prepared monthly. Your field work will be completed on February 20, and you plan to deliver the report and statements to the client by March 12.

1. Prepare a brief statement as to the purpose and period to be covered in a postaudit review of material transactions.

2. Outline the postaudit review program which you would follow to determine what transactions involving material amounts, if any, have occurred since the balance sheet date.