The daily financial press is replete with newsworthy releases that bear on the financial operations of publicly

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The daily financial press is replete with newsworthy releases that bear on the financial operations of publicly traded corporations. Not coincidentally, some of the releases translate to significant subsequent event disclosures in corporate financial statements since, after leaving the field, an auditor's first clue to a subsequent event often comes from news clippings.

Required: 

Using the annual report file in the National Automated Accounting Research System (NAARS), the AICPA's Accounting Trends and Techniques, or copies of annual reports in a library, select a report for a publicly traded corporation that discloses a material subsequent event. Using the newspaper file in NEXIS, Mead Data Central's automated data retrieval system, or recent copies of The Wall Street lournal, select an article you believe may translate into a material subsequent event for a publicly traded corporation. Draft a report that accomplishes the following:

1. For the annual report selected, explain the intuition underlying the subsequent event and whether the event is a Type I or Type II subsequent event.

2. For the article selected:

a. Explain why you believe the article may translate into a Type I or Type II subsequent event.

b. If you believe a footnote is appropriate, draft the subsequent event footnote, using as a guide the language in the disclosure you discuss in (1), among other disclosures you may locate in NAARS, Accounting Trends nnd Techniques, or the library.

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