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Adjusting Events - Audit Process
Adjusting events are those such give evidence of conditions such existed at the balance sheet date as the settlement of a court case than the balance sheet date that verifies that the entity had a present obligation at the balance sheet date; the bankruptcy of a customer such happens after the balance sheet date generally confirms such a loss existed at the balance sheet date on a obtainable.
An entity does not adjust the amounts well known in financial statements to reflect non-adjusting events than the balance sheet date.
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