Chloe P. Araneta, CPA is an auditor for Delight, a large auditing firm in the country. She is assigned to audit the financial statements of Eala Corporation for the year ended December 31, 2022. Chloe plans to complete the field work and sign the auditor's report on April 12, 2023. Chloe is concerned about events and transactions occurring after December 31, 2022 that may affect the 2022 financial statements of Eala Corporation.  1. Describe the types of subsequent events that require Chloe's consideration and evaluation. 2. What audit procedures should be performed by Chloe to gather evidence regarding subsequent events?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Chloe P. Araneta, CPA is an auditor for Delight, a large auditing firm in the country. She is assigned to audit the financial statements of Eala Corporation for the year ended December 31, 2022. Chloe plans to complete the field work and sign the auditor's report on April 12, 2023. Chloe is concerned about events and transactions occurring after December 31, 2022 that may affect the 2022 financial statements of Eala Corporation. 

1. Describe the types of subsequent events that require Chloe's consideration and evaluation.
2. What audit procedures should be performed by Chloe to gather evidence regarding subsequent events?

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