Discuss the difference between a subsequent event and a subsequent discovery of facts.
- Create a scenario that demonstrates specific ways in which management could manipulate transactions impacting inventory values that the auditing team might not detect. Recommend key strategies that the auditor could implement in anticipation of such manipulation. Justify your response.
- Discuss the difference between a subsequent event and a subsequent discovery of facts. Next, determine the auditor’s responsibility for each event after the audit report is completed. Support your position.
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