Chapter 11, Problem 64EP

a.

To determine

Explain the term subsequent event, and also identify the time period for which Person E is responsible for subsequent events.

b.

To determine

State some procedures which may be performed by Person E in identifying the subsequent events.

c.

To determine

Explain the two types of subsequent events and also, state the way through which the information related to these types of subsequent events is reflected in D’s financial statements.

d.

To determine

Explain the way through which Mr. E proceed if he became aware of the given subsequent events on the following dates.

e.

To determine

Explain the responsibility of Mr. E related to the acquisition in the audit of D’s financial statements for the year ended December 31, 2014.