Subsequent events procedures
Before the auditor’s report date, the auditor performs procedures designed to obtain sufficient appropriate evidence that events requiring adjustment or disclosure have been identified. Procedures may include inquiry, reading minutes and examining later financial information.
Worked example
Before signing, the auditor reviews board minutes and asks about significant events since year end.
Common mistake
The scope of the auditor’s duty changes after the report date; do not state that the same active search continues indefinitely.
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 |