A non-adjusting event is one that occurs:
A) After the reporting date.
B) After the auditor has signed the audit report.
C) After the completion of the financial reports.
D) After the financial statements have been distributed.
E) None of the given answers.

Question

Quizplus · Accepted Answer

A non-adjusting event is one that occurs after the reporting date. This means that the event is not reflected in the financial statements themselves, as they have already been prepared and distributed at that time. Non-adjusting events may still be disclosed in the footnotes or other sections of the financial statements, but they do not affect the numbers reported in the statements themselves. The other choices are incorrect, as the timing of the event in relation to the auditor's report or the completion and distribution of the financial statements is not relevant to whether it is adjusting or non-adjusting.

A Non-Adjusting Event Is One That Occurs