Accounting due Saturday

Homework 7

Q1. Why should the auditor review transactions and events that occurred after the balance sheet date? Does this responsibility extend indefinitely? What are the types of subsequent events that must be evaluated by the auditor and what actions should be taken for each type? 

Q2. What are contingent liabilities? What is the auditor’s objective in reviewing contingent liabilities? Highlight some of the audit procedures commonly used to research for contingent liabilities.

Your homework submission (all questions combined) should be 2 to 3 pages in length (double spaced, Times New Roman 12 or Arial 10 Font). Post it to ‘Homework 7’ under ‘Assignments’ by 8/02/2015 11:59 PM.