Jonathan Ewing is auditing the financial statements of California Company for the year ended December 31, 2020. In concluding the process of gathering sufficient appropriate evidence, Ewing has asked to meet with his supervisor on the audit (Daniel Ross) to discuss responsibility for events occurring after the date of the financial statements. Assume that on January 8, 2021, California Company agreed to acquire San Jose Inc. in a significant transaction. The date of Ewing's report was February 7, 2021, and California issued its financial statements (and Ewing's reports on its financial statements and internal control over financial reporting) on February 14, 2021. Required: How would Ewing proceed if he became aware of this subsequent event on the following dates? 1. January 10, 2021 2. February 10, 2021 3. February 20, 2021
Jonathan Ewing is auditing the financial statements of California Company for the year ended December 31, 2020. In concluding the process of gathering sufficient appropriate evidence, Ewing has asked to meet with his supervisor on the audit (Daniel Ross) to discuss responsibility for events occurring after the date of the financial statements.
Assume that on January 8, 2021, California Company agreed to acquire San Jose Inc. in a significant transaction. The date of Ewing's report was February 7, 2021, and California issued its financial statements (and Ewing's reports on its financial statements and internal control over financial reporting) on February 14, 2021.
Required: How would Ewing proceed if he became aware of this subsequent event on the following dates?
1. January 10, 2021
2. February 10, 2021
3. February 20, 2021
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