The auditing standard on subsequent events provide the basic principles and procedures as to the auditor‘s responsibilities and deal with: i. Dating the auditor‘s report ii. Audit procedures iii. Events after the date of the audit report. Required: Outline the audit procedures considered necessary between the balance sheet date and the date of the auditor‘s report

The audit procedures considered necessary between the balance sheet date and
the date of the auditor‟s report

  •  Reviewing procedures management has established to ensure that subsequent events are identified and inquiring whether any such events have occurred which might affect the financial statements being reported on;
  • Reading minutes of the meetings of the board of directors and audit committees held after the end of the financial period. By reading such minutes the auditor is able to identify any material subsequent events that might have occurred since this would ordinarily be discussed at these meetings;
  •  Review the entity‘s latest available interim financial statements and other reports such as budgets, cash flow forecasts. By reading such interim financial statements the auditor is able to identify any subsequent events;
  •  Inquiring from the entity‘s lawyers on litigation and legal claims against the company. This will provide further details on any developments on such litigations;
  •  Inquiring from management whether any subsequent events have occurred which might affect the financial statements.

When the auditor becomes aware of events, which materially affect the financial statements, he should consider whether such events are properly accounted for in the financial statements.



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