signed adtseports were miu September 6, 2016. ne field orkfor the Jne 30, 2016,
ID: 2587725 • Letter: S
Question
signed adtseports were miu September 6, 2016. ne field orkfor the Jne 30, 2016, audt of TracyBrew ng Compan ast shed Aqust 19, 2016, and the co pieted fra cial statements, accompaned by Requirement In each of the highly material independent events (a. through h ), stabe the appropriabe action(1 through 4) for the siuation and justify your nesponse. The aternative acions are as follows The events are as olows ck the con to view reanernative actors 0ckthe ioon to view tw highlymaterial independent everes.) Aetion Response Amours wooecteie was dscove ed ater the issuance of the salernent. The amount appeared collectible as of the date of the audt repert The amount requred in a tootno dseosure because the wbsequem event is matera. The a ont cd the oes urar own even thagMorgnated nth" c rrent yea' The bankruptcy took pace aher balance steet dat, thenfore "s tary stated at 6-30-10 The fnancial statements should have been known to be msstated on 8-19-16 The fnancial statements were beleved to be fairly stated on 6-30-16 and 8-19-16 The lawsut should be ncluded in the 6-30-16 footnotes because it occured belore he balance sheet date The sale took place atter the balance sheet date but the loss was matena, so a foon ote dscloure maaed hoose from ar The setfement should be reflected in the 6-30-16 fnancal statement as an adjustment of curnent pend me The uncollectible amoures was ermined before end of field wExplanation / Answer
Solution:
In Each of the Highly Material Independent Events (a through h), Stating the Appropriate Action (1 through 4):
a 2 The bankruptcy took place after the balance sheet date, therefore the balance sheet was fairly stated at 6-30-16 b 3 The financial statements should have been known to be misstated on 8-19-16 c 4 The amount appeared collectable at the end of the fieldwork d 1 The uncollectible amount was determined before end of fieldwork e 1 The settlement should be reflected in the 6-30-01 financial statementas an adjustment of current period income f 4 The financial statements were believed to be fairly stated for 6-30-16 or 8-19-16 g 2 The Lawsuit should be included in the 6-30-16 footnotes because it occured before the balance sheet date h 2 The amount of the loss is unknown even though it originated in the current year.Related Questions
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