ISA 560 – Subsequent Events

Part 1: Introduction, Executive summary

Part 2: The time after end…, Subsequent events, Auditor’s objectives
Part 3: Auditor’s responsibilities

Read ISA 560 Summary Online  ISA 560 Test

Introduction

International Standard on Auditing 560: Subsequent Events deals with auditor’s responsibility towards events that occur after reporting date and especially that occur after reporting date but before auditor’s report is issued. For events after auditor’s report has been released and then something comes auditor’s attention then ISA 560 suggest the manner it should be approached.

Executive Summary

Auditor must ensure that all the events up to the reporting date that needs to be reported in the financial statements have been identified and accounted for appropriately. For events that come in auditor’s notice after reporting date but before auditor’s report is issued, he shall ensure that events requiring adjustments have been accounted for. Auditor is not responsible for events occurring after auditor’s report is issued but if he comes to know of such events that existed before reporting date and could have resulted in a different auditor’s report if they were known to auditor then auditor shall take steps as required by ISA 560.