1. 2. 3. 4. 5. 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. Type 1 subsequent events involve events that existed Type 1 subsequent events require Type 2 subsequent events come into existence Type 2 subsequent events occur after the balance sheet date but fieldwork. Type 1 subsequent events come into existence due to new the balance sheet date. of the financial statements. the balance sheet date. the completion of becoming available.