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Milton Green, CPA, is auditing the financial statements of Taylor Corporation for the year ended December 31, 2011. Green plans to sign the auditor’s report on March 10, 2012. He is concerned about events and transactions occurring after December 31, 2011, that may affect the 2011 financial statements.
Required
a. What are the general types of subsequent events that require Green’s consideration and evaluation?
b. What are the auditing procedures Green should consider performing to gather evidence concerning subsequent events?
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