You are nearing completion of an audit examination of the financial statements of Shady Corp. In fact, you have almost completed the field work for the year ended October 31, 2 2020. However, one final step remains. You have to determine whether material subsequent events occurred.

a. Briefly define "subsequent event" 

b. Explain how those subsequent events that require monetary financial statement adjustments differ from those that require only financial statement disclosure.

c. State two procedures that may be performed to determine the occurrence of subsequent events.

Answer rating: 100% (QA)

a Subsequent events Are all those events that occurs between the balance sheet date but before the r... View the full answer