Q1. You are nearing the end of the audit for Yang Ltd and have commenced your review for subsequent events.

The balance sheet date is 30 June. The audit report date is 30 September.

Analyse the following independent situations regarding subsequent events.

For each subsequent event:

questiona) Determine whether the event would require i) an adjustment or ii) disclosure in the financial statements and provide an explanation for your answer; and

questionb) Describe what evidence would have brought this information to your attention.

question c. (A large debtor is declared bankrupt on 15 September).