Your Client's Balance Sheet Date Is 30/6/2012, the Audit Report

question 42

True/False

Your client's balance sheet date is 30/6/2012, the audit report date is 15/9/2012 and the financial statements and audit report are issued 30/9/2012. Your client suffers a material loss due to an uninsured loss of inventory as a result of fire that occurred 5/7/2012. This event warrants footnote disclosure in, but not an adjustment to, the 30/6/2012 financial statements.

---

Definitions:

Paid Sooner

A situation where payments or financial obligations are settled or fulfilled ahead of the original schedule or due date.

Explanation of Benefits (EOB)

A document provided by insurance companies to insured individuals explaining what medical treatments and services were paid for on their behalf.

Patient

An individual who is receiving or registered to receive medical treatment.

Signature on File

A statement indicating that a person's signature is kept on record, often used in contexts where repeated verification of identity is necessary.