When Samantha Dieter was training her staff about the auditor's responsibility for subsequent events she made the two following statements:
(i) Type 2 subsequent events are those events that do not result in changes to financial statements.
(ii) Type 1 subsequent events do not require adjustments to financial statements.
Which of the above statements, if any is true?

Question

Quizplus · Accepted Answer

Type 2 subsequent events are those that provide evidence about conditions that did not exist at the balance sheet date and do not result in changes to the financial statements, making statement (i) true. Type 1 subsequent events require adjustments, making statement (ii) false.

When Samantha Dieter Was Training Her Staff About the Auditor's