Describe the type of subsequent event

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Q1. You have been hired to manage its accounts payable system. To help prevent errors and fraud in the financial statements, describe the functions involved in this process that should be separated to achieve adequate separation of duties.

Q2. On February 2, 2021, prior to the release of the December 31, 2020 financial statements, the auditors of Frakt Freight Company were alerted to a potential material misstatement in recording sales of unused trucks. After performing additional audit procedures, the auditors determined that the company had deliberately inflated the value of sales occurring in the fiscal year ending December 31, 2020. Describe the type of subsequent event that occurred in this case and how it would be reflected in the financial statements?

Reference no: EM133096668

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