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The auditor has completed her or his assessment of subsequent events. The proper accounting for ...

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The auditor has completed her or his assessment of subsequent events. The proper accounting for ...

The auditor has completed her or his assessment of subsequent events. The proper accounting for subsequent events that have a direct effect on the financial statements is to

▸ adjust the financial statements for the year under audit.

▸ disclose in the notes to the financial statements the amount of the adjustment.

▸ duly note in the audit workpapers that next year's financial statements need to be adjusted.

▸ make no adjustment of the financial statements for the year under audit.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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