Subsequent events in audit
Subsequent events include events between the date of the financial statements and the auditor’s report, and facts that become known to the auditor after the report date. The auditor’s responsibilities differ by period, including procedures before the report and responses to later facts when relevant.
Worked example
Before signing, the auditor learns that a customer with year-end financial difficulties has entered liquidation and assesses the receivable.
Common mistake
Do not apply a single continuous search duty after the report date without considering the relevant ISA requirements and circumstances.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |