Required information Subsequent Events: What to Disclose? Read the case and answer the questions that follow. Oftentimes a CPA's opinion on the fairness 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. Subsequent events are divided into two categories, those providing additional evidence about facts existing on or before the balance sheet date and 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 and those that involve facts after the balance sheet date. 1. Type 1 subsequent events involve events that existed the balance sheet date. 2. Type 1 subsequent events require of the financial statements. 3. Type 2 subsequent events come into existence after 4. Type 2 subsequent events occur after the balance sheet date but before 5. Type 1 subsequent events come into existence due to new becoming available. between close to near 2. Type 1 subsequent events require of the financial statements. 3. Type 2 subsequent events come into existence the balance sheet date. 4. Type 2 subsequent events occur after the balance sheet date but adjustment 5. Type 1 subsequent events come into existence due to new consideration disclosure documentation duplication 3. Type 2 subsequent events come into existence the balance sheet date. 4. Type 2 subsequent events occur after the balance sheet date but the completion of fieldwork. 5. Type 1 subsequent events come into existence due to new . becoming available. after before between close to 4. Type 2 subsequent events occur after the balance sheet date but the completion of fieldwork. 5. Type 1 subsequent events come into existence due to new becoming available. after close to near to prior to subsequent to 5. Type 1 subsequent events come into existence due to new becoming available. auditors clients documentation evidence judgment