Testing subsequent events List the audit procedures to be performed to determine if subsequent events have occurred and have been appropriately addressed
The audit procedures performed when testing for subsequent events would include:
? Read the minutes of the meetings of the board of directors, stockholders, and other authoritative groups.
? Read interim financial statements and compare them to the audited financial statements, noting significant changes. Investigate significant changes.
? Inquire of management concerning:
- any significant changes noted in the interim statements
- the existence of significant contingent liabilities or commitments at the balance sheet date or
date of inquiry
- any significant changes in working capital, long-term debt, or owners' equity
- the current status of items for which tentative conclusions were drawn earlier
- any unusual adjustments made to the records after year-end.
? Inquire of management and its legal counsel concerning contingencies.
? Obtain a management representation letter.
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