Problem
You are nearing completion of an audit examination of the financial statements of Shady Corp. In fact, you almost completed the fieldwork for the year ended October 21, 2020. However, one final step remains. You have to determine whether material subsequent events occurred.
1) Briefly define "subsequence events".
2) Explain how those subsequent events that require monetary financial statement adjustments differ from those that require only financial statement disclosure.
3) State two procedures that may be performed to determine the occurrence of subsequent events.