Question
AUDITING Type 1 subsequent event is additional information about conditions that existed at the balance sheet date. The financial statement numbers should be adjusted to
AUDITING
Type 1 subsequent event is additional information about conditions that existed at the balance sheet date. The financial statement numbers should be adjusted to reflect this information; footnote disclosure may also be necessary.
Type 2 subsequent event is information about conditions that did not exist at the balance sheet date. These conditions came about after the balance sheet date. The financial statement numbers should not be adjusted for these events, but they should be considered for disclosure.
List and explain in a few sentences three type 1 subsequent events and three type 2 subsequent events.
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