Question
on February year 2, a major customer of the audited entity went bankrupt, resulting in an uncollectible significant receivable. The auditor requested to make provisions
on February year 2, a major customer of the audited entity went bankrupt, resulting in an uncollectible significant receivable. The auditor requested to make provisions for this account receivable for the fiscal year ended december 31 year1 but the entity did not accept. The entity suggested that they disclose this issue in the notes to the financial statements.
Required:
What audit procedures the auditor can use to detect subsequent events? What kind of opinion the auditor might issue in this situation? Suppose that except for this issue, the financial statements have been presented fairly in terms of materiality
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