Question

The CPA's opinion on the ______of the financial statements may be changed by subsequent events. Many subsequent events may involve the settling of ________. Type 2 subsequent events come into existence _____ the balance sheet date. Subsequent events need to be disclosed in the financial statements; otherwise, the financial statements would be_______. Type 1 subsequent events require the financial statements to be _______ if needed.

Answer 1

Answer:

Check the following information.

Explanation:

1) Fairness        

2) Litigation        

3) After        

4) misleading        

5) Adjusted  

     

A subdequent is an event which occurs before the financial statements are issued but after end of period .There are type 1 and type 2 events.        

• Type 1 are one which occurred at financial date but may conclude after the year end.  
• Type 2are ongoing but occurr after year end      
• Type 1 are recognised and type 2 are not recognised