1. The subsequent period in an audit is the time extending from the balance sheet date to the date of the auditors report.

Required:

Discuss the importance of the subsequent period in the audit of trade accounts payable.

2. During your annual audit of Walker Distributing Co., your assistant, Jane Williams, reports to you that, although a number of entries were made during the year in the general ledger account Notes Payable to Officers, she decided that it was not necessary to audit the account because it had a zero balance at year-end.

Required:

Do you agree with your assistants decision? Discuss.