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

Question

Quizplus · Accepted Answer

The issuance of bonds after year-end does not affect the financial statements for the period under audit, but it requires disclosure in the footnotes as a subsequent event. As such, there is no need for an adjustment to the financial statements, but the auditor must ensure that the disclosure is adequate and complete.

The Issuance of Bonds by the Client Subsequent to Year-End