Read the overview below and complete the activities that follow. Oftentimes a CPA's opinion on the faimess of the financial statements may be changed by subsequent events. Subsequent events are events that happen after the balance sheet date but before the financial statements are issued. Auditors have responsibility for evidence not available at the close of the period but which becomes available before the auditors finish their fieldwork and issue their opinion. Subsequent events are divided into two categories: Type 1 are those providing additional evidence about facts existing on or before the balance sheet date and Type 2 are those involving facts coming into existence after the balance sheet date. CONCEPT REVIEW: Accounting standards divide subsequent events into two categories-those that provide more information about facts that already existed at the balance sheet date (Type 1) and those that involve facts after the balance sheet date (Type 2). 1. The CPA's opinion on the events. of the financial statements may be changed by subsequent 2 Many subsequent events may involve the setting of 3. Type 2 subsequent events come into existence the balance sheet date. 4. Subsequent events need to be disclosed in the financial statements, otherwise, the financial statements would be 5. Type 1 subsequent events require the financial statements to be if needed \begin{tabular}{l|l|} \hline ts may be changed by subsequent \\ \hline balance sheet date. & accuracy \\ \hline if needed & retherwise, the financial \\ \hline \end{tabular}