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sir there is a question in study hub which i have doubt in
now as per isa 560 a subsequent event is – Events occurring between the date of the financial
statements and the date of the auditor’s report, and facts that become
known to the auditor after the date of the auditor’s report.
now there are two things in this
1) the event must have occured between end date and auditor report date
2) the facts, HAD IT BEEN KNOWN TO AUDITOR AT AUDITOR REPORT DATE, should cause the auditor to amend the statements( again it means the event should have occured before auditor datehowever there was a question where a fire had occured after auditor report date, but still the answer stated to disclose because it was material. but i think only those non adjusting event with material effect should be disclosed which have occured between end date and auditor report( or discovered after auditor report date)….but in this the event itself has occured after auditor report….
You are correct. Since the auditor’s responsibility (to report an opinion) is discharged with the issue of the auditor’s report, the auditor can have no responsibility for events that occur after that date.
But can you please tell me which Q you are referring to. I do not think the Study Hub would be incorrect in this matter, rather that there must be some misunderstanding, which I should like to check out.
study question ch 29 oilrakers co
where the accidental release of toxic chemicals occured after audit report was signed(event not occuring between end date and auditor report date) but they said to disclose.
i saw many videos on youtube where examples were given, like customer declared bankrupt after auditor report date, in which case the answer was to not do anythingYou have asked a good question, but the reason the Study Hub answer is correct is because the assumption in the requirement: “Your answer should assume that the directors agreed to make any necessary changes to the financial statements.”
Although the auditor’s report was signed on 23 March, the financial statements were not issued until 23 May – so the directors want the financial statements to be updated to inform users of the even on 1 May – and hence the auditor’s report must be updated also.
This is conveyed in the answer where the procedures include obtaining updated written representations.
But sir in general scenario
Any event after auditor report date should NOT BE CONSIDERED AT ALL FOR THE CURRENT YEAR END.
since this is in line ias 10 events after reporting periodIn law, the auditor holds office from the AGM at which they are appointed until the following AGM when their opinion on the FS is presented, with the FS, before the members/shareholders.
In the given scenario, because the FS are changed before delivery to the members, the PBSE period as defined by IAS 10 is to the later date.
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