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
Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process
Section: Chapter Questions
Problem 40CYBK
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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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