The issuance of bonds by the client subsequent to the balance sheet date would require a footnote disclosure in, but no adjustment to, the financial statements under audit.

Question

Quizplus · Accepted Answer

The issuance of bonds after the balance sheet date is a subsequent event, which requires disclosure in the footnotes to the financial statements but does not require an adjustment to the financial statements already audited.

The Issuance of Bonds by the Client Subsequent to the Balance