O'Reilly logo

Interpretation and Application of International Standards on Auditing by Steven Collings

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

26

ISA 560 (REDRAFTED) SUBSEQUENT EVENTS

ISA 560 (redrafted) outlines the auditor’s responsibility in relation to subsequent events. For the purposes of ISA 560, subsequent events are those events that occur between the reporting date and the date of approval of the financial statements and signing of the auditors’ report.

In summary, the auditor should perform audit procedures designed to obtain sufficient appropriate audit evidence that all events up to the date of the auditors’ report that may require adjustment of, or disclosure in, the financial statements have been identified.

It is widely understood that an audit of an entity’s financial statements often takes place sometime after the reporting date and during the intervening period, facts could arise that may affect the financial statements. There is also a relevant International Accounting Standard which deals with such events, IAS 10 ‘Events after the Reporting Period’.

The audit procedures to be adopted by the auditor where subsequent events are concerned may give rise to an adjustment to, or the inclusion of a note in, the financial statements. The auditor will adopt relevant procedures depending on the risk assessment of the client.

AUDIT PROCEDURES ON SUBSEQUENT EVENTS PRIOR TO THE DATE OF THE AUDITOR’S REPORT

Typical procedures the auditor may adopt when obtaining sufficient appropriate audit evidence in relation to subsequent events could include:

  • Determining the extent to which management have established procedures ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required