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Michael Ewing is auditing the financial statements of Dallas Company for the year ended December 31,2020 . In concluding the process of gathering sufficient appropriate
Michael Ewing is auditing the financial statements of Dallas Company for the year ended December 31,2020 . In concluding the process of gathering sufficient appropriate evidence, Ewing has asked to meet with his supervisor on the audit (John Ross) to discuss responsibility for events occurring after the date of the financial statements. Required: a. During what time period is Ewing responsible for subsequent events? b. List some procedures that Ewing may perform to assist him in identifying subsequent events. c. What are two types of subsequent events? How should information related to these types of subsequent events in Dallas's financial statements? d. Assume that on January 8, 2021, Dallas Company agreed to acquire Houston Inc. in a significant transaction. The date of Ewing's report was February 7, 2021, and Dallas issued its financial statements (and Ewing's reports on its financial statements and internal following dates? 1. January 10,2021 . 2. February 10,2021 3. February 20,2021
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