Please answer the following quesiton. Thank you!
Required: The above list of events that took place after the end of the fiscal year, but prior to the date of the audit report. Assume each event is independent of the others and that no subsequent event procedures have been carried out to date. Also, assume that no adjustments have been made by the company for any of the events in the financial statements provided to you. For each subsequent event: Indicate whether the event is either a Type I, Type II, is not necessary to pursue and why or that it is neither. Indicate what audit procedure(s), as the auditor, should be performed given the circumstance as described or to determine if it is a Type I or Type II event. When determining whether the event should be investigated further, ensure that you consider the clearly less than trivial level that was determined in Task 2. Explain why you feel this is the correct action to take. Support your explanation with reference to the CPA Handbook auditing standards as appropriate. Where appropriate, indicate what the proposed journal entry would be and ensure that you add it to the Summary of Identified Misstatements Worksheet. ONLY include items where no additional audit procedures need to be performed Date Event Response Explanation January 9. 2021 January 10. 2021 January 4. 2021 January 18, 2021Amount of over (under) misstatements in the financial statements Corrected? W/P Description Assets Liabilities Pre-tax Income Equity Yes/No Ref Total identified misstatements during audit Misstatements corrected by management Total uncorrected misstatementsColAlta Pipeline, Ltd. Subsequent Events Following are a series of independent situations (i.e. do not let any one situation affect your view of the other situations). For each situation below, desci be what action you believe you as the auditor should take in the given situation, and provide an explanation as to why you believe this is the correct course of action. Support your response with reference to the auditing standards where appropriate. For the purpose of this activity, recall that the financial statements are dated December 31, 2020. Assume that the audit report will be dated February 15, 2021. Date of the event Event January 9, 2021 A maintenance crew was doing routine repairs on a section of the pipeline during the fiscal year. The operator of the backhoe accidentally damaged a truck belonging to the owner of the property. Damages are estimated at $4,500. January 10, 2021 As you were completing the final summary of your working papers for accrued liabilities, one of the accounts payable clerks informed you that she had discovered the December invoice for office utilities had not been entered into accounts payable, in the amount of $1,687. January 4, 2021 One of the accounts receivable clerks resigned on this date. As he cleaned out his desk, he spoke quite loudly and angrily about how ColAlta used fraudulent financial reporting practices. Another clerk informed you that the clerk who resigned had been very unhappy for some time. January 18, 2021 While you were interviewing one of the payroll clerks, you were told that there was a rumour of sub-standard materials having been used in one section of the pipeline during construction
