One, What is a "subsequent event" in audit process? Two, What procedures are performed during the...

One, What is a "subsequent event" in audit process?
Two, What procedures are performed during the subsequent period in an audit? In your logic, what are these procedures are intended for, as a financial reporting auditor?

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Expert Solution

A subsequent event is an occasion that happens after a reporting duration, but before the financial statements for that period had been issued or are to be had to be issued.

Also, all auditing procedures are not carried out at the same time and some phases of an audit will be performed during the subsequent period, whereas other phases will be substantially completed on or before the balance-sheet date. As an audit approaches completion, the auditor will be concentrating on the unresolved auditing and reporting matters and he is not expected to be conducting a continuing review of those matters to which he has previously applied auditing procedures and reached satisfaction.

Certain specific procedures are applied to transactions occurring after the balance-sheet date such as (a) the examination of data to assure that proper cutoffs have been made and (b) the examination of data which provide information to aid the auditor in his evaluation of the assets and liabilities as of the balance-sheet date.

ekkarill92 answered 1 year ago

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