What audit procedures should be performed for identifying subsequent events?
For audit purposes, subsequent events or transactions are events that occur after the balance sheet date, but before the financial statements are issued or are available to be issued to readers. During the subsequent period, the auditor should be able to obtain an understanding of the procedures in which management has determined these events.
The auditor should perform the following audit procedures:
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What is a subsequent event?
In general, subsequent events covers information that surfaces to managements attention after the date of the financial statements, but prior to the issuance of the financial statements. For example, if the company has a year-end date of December 31, Year 1, and the financial statements are not issued until March 15, Year 2, then any […]