Subsequent Events

Question 1

Subsequent Event Procedures

Answer 1

• Review of post balance transactions
• Review management rep letter
• Make inquiries of management regarding any unusual adjustments
• Review of the minutes of a stockholders meeting
• Examine the latest interim financial statements

Question 2

Date of Audit Report

Answer 2

The date of the original audit report should be used because the audit report date of March is after the date of the subsequent event.