Answered: s only in the notes. c. Either a or b…

s only in the notes. c. Either a or b as an accounting policy choice. d. None of these. The PFRS for SMEs does not require SMEs to identify and account for events after the reporting period.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter15: Audit Reports For Financial Statement Audits

Section: Chapter Questions

Problem 12RQSC

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Question

16. How does an SME account for events after the reporting period that provide evidence of conditions that existed at the end of the reporting period?

a. As adjusting events after the end of the reporting period.

b. As disclosures only in the notes.

c. Either a or b as an accounting policy choice.

d. None of these. The PFRS for SMEs does not require SMEs to identify and account for events after the reporting period.

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