Scribd
Upload
41 views

Sa 560 Notes

Uploaded by

Thales Theoram
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
41 views

Sa 560 Notes

Uploaded by

Thales Theoram
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

3.

10 – SUBSEQUENT EVENTS (SA 560)


SCOPE OF SA 560:
SA 560 deals with the auditor's responsibilities relating to subsequent events in an audit of F.S. It
does not deal with matters relating to the auditor's responsibilities for other information obtained
after the date of the auditor's report, which are addressed in SA 720. However, such other
information may bring to light a subsequent event that is within the scope of this SA.
MEANING OF SUBSEQUENT EVENTS:
Events 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.
OBJECTIVES OF AUDITOR:
The objectives of the auditor are to:
(a) Obtain sufficient appropriate audit evidence about whether events occurring between the date
of the financial statements and the date of the auditor's report that require adjustment of, or
disclosure in, the financial statements are appropriately reflected in those financial statements;
and
(b) Respond appropriately to facts that become known to the auditor after the date of the auditor's
report, that, had they been known to the auditor at that date, may have caused the auditor to
amend the auditor's report.
Date of the F.S.
The date of the end of the latest period covered by the financial statements.

 Date of the auditor's report


The date the auditor dates the report on the financial statements.

AUDIT PROCEDURES REGARDING EVENTS OCCURRING BETWEEN THE DATE OF THE


FINANCIAL STATEMENT AND THE DATE OF THE AUDITOR’S REPORT:
(a) The auditor shall perform audit procedures to obtain sufficient & appropriate audit evidence
to ensure that events which require adjustments or disclosure in the financial statements have
been identified.
(b) In determining nature & extent of audit procedures, auditor shall:
(i) Obtain an understanding of the procedures through which management has identified
subsequent events.
(ii) Inquiring of management as to occurrence of Subsequent events which affect the financial
statements.
(iii) Read minutes of management meetings that have been held after the date of the financial
statements.
(iv) Read the entity's latest subsequent interim financial statements, if any.
(c) If auditor identifies events that require adjustment or disclosure in the financial statements, the
auditor should determine whether each such event is appropriately reflected in the financial
statements.

Excel Educational Institute, Raipur Website : www.exceledu.co.in CA-Inter - II 24


09926821000, 07714095300 E-Mail : eeiraipur@gmail.com [Standard Auditing – Ch. 1]
AUDIT PROCEDURES REGARDING FACTS WHICH BECOME KNOWN TO THE AUDITOR
AFTER THE DATE OF THE AUDI TOR'S REPORT BUT BEFORE THE DATE THE F.S. ARE
ISSUED:
(a) The auditor has no obligation to perform any audit procedures regarding the financial
statements after the date of the auditor's report.
(b) However, if a fact becomes known to the auditor that, had it been known to the auditor at the
date of the auditor's report, may have caused the auditor to amend the auditor's report, the
auditor shall:
(i) Discuss the matter with management.
(ii) Determine whether the financial statements need amendment and, if so,
(iii) Inquire how management intends to address the matter in the financial statements.
AUDIT PROCEDURES REGARDING FACTS WHICH BECOME KNOWN TO THE AUDITOR
AFTER THE FINANCIAL STATEMENTS HAVE BEEN ISSUED:
(a) The auditor has no obligation to perform any audit procedures regarding such financial
statements.
(b) However, if a fact becomes known to the audit or that, had it been known to the auditor at the
date of the auditor's report, may have caused the auditor to amend the auditor's report, the
auditor shall:
(i) Discuss the matter with management.
(ii) Determine whether the financial statements need amendment and, if so,
(iii) Inquire how management intends to address the matter in the financial statements.

Important Questions
Q.36: Write short note on: Subsequent Events.
Or
Explain the meaning of term “Subsequent Event” as used in SA 560. Should all types of subsequent events
be considered by the auditor in attest functions? [May 12 (8Marks)]

Q.37: “the auditor should consider the effect of subsequent on the financial statements and auditor’s report
according to SA 560”. Comment.

Excel Educational Institute, Raipur Website : www.exceledu.co.in CA-Inter - II 25


09926821000, 07714095300 E-Mail : eeiraipur@gmail.com [Standard Auditing – Ch. 1]

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy