The following unrelated events occurred after the balance sheet date but before the audit report was prepared:
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Question:
The following unrelated events occurred after the balance sheet date but before the audit report was prepared:
The granting of a retroactive pay increase
Determination by the federal government of additional income tax due for a prior year
Filing of an antitrust suit by the federal government
Declaration of a stock dividend
Sale of a fixed asset at a substantial profit
How each of the above items might have come to the auditor’s attention? Why is it the auditor’s responsibility to recognize each of these in connection with the audit report and opinion?
Related Book For
Principles of Auditing An Introduction to International Standards on Auditing
ISBN: 978-0273768173
3rd edition
Authors: Rick Hayes, Philip Wallage, Hans Gortemaker
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