Question

What is the difference between a "subsequent event" and the "subsequent discovery of facts" in an audit? What are the auditor's responsibilities for each?

Answer 1

"Subsequent Event " = When the auditor does auditing and if any relevant fact finding are found in between the  date of financial statements and in between the  reporting of auditor report its called subsequent events

" Subsequent Discovery Of facts " = When the preparation of audit report is done and audit is complete of financial statements and certain relevant facts came in disclosure of auditor after reporting the audit report those fact are called Subsequent Discovery Of facts

The auditor Responsibilities are laid and provided differently in both scenarios

In Case of Subsequent Event =If certain Facts are found while auditing the financial statements its duty of auditor to report each and every aspect of fact to be disclosed in auditing report and if certain facts which are in eyes of auditor and still not disclosed by auditor then the auditor in charge is liable so the its auditor responsibility to disclose each and every finding which are inappropriate  with the Accounting standard .

In Case of Subsequent Discovery of facts if auditor came to find the certain events after submitting his audit Report , it duty of auditor to revise his audit report and disclose all the fact finding in revised in audit report.

Thanks

If any Question you have please free to ask in comment section