You have noted following subsequent events in the audit of a client. State with reasons whether such events should be adjusted or disclosed. The year end of the company is December 31, 20×1. The accounts were approved by the directors on March 5, 20×2. 1. Rs.300,000 were receivable from a customer at December 31 20×01. Due to weak financial…

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AUDITOR’S DUTIES AS REGARDS SUBSEQUENT EVENTS ISA 560 sets out auditor’s duties as regards subsequent events at three stages. 1.1 YEAR – END TILL DATE OF AUDITOR’S REPORT Perform procedures to verify that all events requiring adjustment or disclosures have been identified. – Ensure that matters materially affecting financial statements are properly accounted for and adequately disclosed in the…

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