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I have question in subsequent event.
If auditor just discovered the fact after the audit report signed, why the financial statement will still be required to make adjustment?
I thought under IAS 10 only required to adjust for the fact discovered before the financial statement approved by director?
Can I have some example which required to amend the financial statement after the audit report is signed?IAS 10 is financial reporting – events after the reporting date
ISA 560 is auditing – subsequent eventsSee page 111 of the notes – auditor’s duty extends (“passively”) beyond the date to which IAS 10 relates
FS will not necessarily be “required” to be adjusted especially as in practical terms so much time has elapsed it may nearly be the next year end (!)
It would only be if the FS were absolutely misleading (“defective”) that the directors would notify shareholders to disregard the issued FS and reissue with amended FS (with revised auditor’s report). Discovery of a major fraud might be an example.
This is very peripheral to AA syllabus.
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