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In addition with all the recent scandals the need for more control processes and monitoring of company's accounting policies have become more evident and vital in the financial statements that are prepared and distributed.
There are two types of events or transactions that occur after the balance sheet that can have material effects on the financial statement...
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These two types of events or transactions are as follows:
1. Events that provide additional evidence about conditions that existed at the balance sheet date, affect the estimates used in preparing financial statements, and therefore, result in needed adjustments.
2. Events that provide evidence about conditions that did not exist at the balance sheet date but arise subsequent to that date and do not require adjustment of the financial statements...
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