Identify audit procedures normally associated with events

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Question - The financial year of Sullivan & Evans Limited ended on 30 June 2020. Your auditor's report was signed on 20 August and the financial statements were issued on 5 September. Listed below are events that occurred or were discovered after the end of the financial year. Assume that each has a material effect on the financial statements.

-22 July 2020 - Sullivan & Evans Limited received a notice that one of its customers was taking legal action in relation to a disputed warranty claim. The customer purchased the goods on 31 May 2020 and first informed Sullivan and Evans of problems with the goods on 28 June 2020.

-25 August 2020 - There was a fire at Sullivan & Evans Limited warehouse which destroyed 30% of the inventory.

REQUIRED - In the box below, provide your answers to the following questions:

(a) Identify the audit procedures normally associated with subsequent events.

(b) Indicate your responsibilities for each of the above events.

(c) Indicate the type of disclosure (if any) you would recommend in relation to each of the above events.

Reference no: EM132818135

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