What audit procedures should the auditor perform to search for subsequent events ?

Expert Solution

Answer:

Subsequent events are those vents that are 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.

Audit procedures that auditor should perform to search for subsequent events:

Obtain an understanding of any procedures management has established to ensure that subsequent are identified.
Inquiring of management and those charged with governance with respect to subsequent events.
Read minutes, if any, of meetings, of the entity's owners management and those charged with governance , that have been held after the date of the financial statements.
Read the entity's latest subsequent interim financial statements, if any.
The auditor shall request the management to provide a management written representation letter that all event occurring subsequent to the date of the financial statement and for which the applicable financial reporting framework requires adjustment or disclosure has been adjusted or disclosed.
If the management amends the financial statements the auditor shall extend the audit procedures referred to the date of the new auditors' report.

ekkarill92 answered 2 years ago

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