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Hello sir , i wanted to ask that there 2 periods, between y /end is complete and director and auditor sign the report, im sure that IAS 10 applies there, then there is the period where director and auditor have signed it but agm is left, does IAS 10 apply there also?
The IAS stops at the date on which the financial statements are aproved fro issue by the directors
However, ISA 560 goes further. Here’s an extract from an article by the F8 assessor:
“Financial statements amended after the date of the auditor’s report, but before the financial statements are issued.
Circumstances may arise when the auditor becomes aware of facts that may materially affect the financial statements and, in such situations, the auditor will consider whether the financial statements need amending. The auditor is required to discuss with management how they intend to deal with events that will require the financial statements to be amended after the auditors have signed their report, but before the financial statements are issued.
Where the financial statements are amended, the auditor is required to carry out necessary audit procedures in light of the circumstances giving rise to the amendment. The auditor will also be required to issue a new auditor’s report on the amended financial statements and, therefore, must extend their subsequent events testing up to the (expected) date of the new auditor’s report. The revised auditor’s report must not be dated any earlier than the date of the amended financial statements. In situations where management refuses to make amendments to the financial statements, the auditor must take all steps required to avoid reliance by third parties on the auditor’s report. The auditor should also consider the need to resign from the audit.”
OK?
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