How to Deal With Subsequent Events After the Reporting Period
Author:
Steve COLLINGS, ACCA
JEL:
M42
DOI:
Keywords:
subsequent events, financial reporting, adjusting event, non-adjusting event, audit procedure
Abstract:
This article is considering the financial reporting aspects concerning subsequent events using a case study type scenario, and will then discuss the auditing requirements that all the professional auditors need to be aware of. \r\nFinancial reporting aspects relating to events after the reporting period, are analysed in the first part of the article. The second part of the article will consider the auditor’s responsibility in relation to ensuring all events occurring between the reporting date and the (expected) date of the auditor’s report have been adequately taken into consideration and sufficient appropriate audit evidence have been gathered to achieve the objectives.\r\nSubsequent events are and will continue to be a key area in audit and it is crucial that all those involved in the process have an understanding of the types of audit evidence that the auditor should obtain to confirm that the accounting and disclosure requirements (particularly in IAS 10) have been applied correctly within the financial statements.\r\n