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Sa 560

SA 560 outlines the auditor's responsibilities regarding subsequent events that occur between the date of financial statements and the auditor's report. The auditor must obtain sufficient evidence to ensure such events are properly reflected in the financial statements and respond to any facts that arise post-reporting date. The document details procedures for identifying events, amending reports, and communicating with management or those charged with governance (TCWG) if necessary.

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7 views2 pages

Sa 560

SA 560 outlines the auditor's responsibilities regarding subsequent events that occur between the date of financial statements and the auditor's report. The auditor must obtain sufficient evidence to ensure such events are properly reflected in the financial statements and respond to any facts that arise post-reporting date. The document details procedures for identifying events, amending reports, and communicating with management or those charged with governance (TCWG) if necessary.

Uploaded by

lalita22051978
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

SA 560 "Subsequent Events"

Scope of the SA
This SA deals with auditor's responsibilities relating to subsequent events in an audit of financial
statements.
Objectives of the auditor
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.
b) Respond appropriately to the 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.
Events occurring between the date of the Financial Statements and date of the auditor's report
1) The auditor shall perform audit procedures to ensure that all such events have been
identified.
2) The auditor shall consider the auditor's risk assessment in determining the nature and
extent of such procedures.
3) If such event is identified, determine whether such event is appropriately reflected in
financial statements.
4) Obtain Written Representation that all such events have been adjusted or disclosed.
Facts which become known to the auditor after the date of the auditor's report but before the
date the financial statements are issued.
1. Discuss the matter with management or TCWG.
2. Determine whether the financial statements need amendment.
3. Inquire how management intends to address the matter in the financial statements.
 If management amends the financial statements, auditor should extend the audit procedures
and
1. Either amend the audit report to include an additional date restricted to the amendment.
Or
2. Provide a new/ amended report including a statement in EOM/ OM para.
 If management doesn't amend the financial statements:
1) If audit report not yet provided to the management, modify the opinion.
2) If audit report has already been provided to the management, notify TCWG not to issue it
to third parties. If still issued then take appropriate action to prevent reliance on the
auditor's report.
Facts that become known to the auditor after the financial statements have been issued
1. Discuss the matter with management or TCWG.
2. Determine whether the financial statements need amendment.
3. Inquire how management intends to address the matter in the financial statements.
Review if management has taken steps to inform about the situation to everyone in receipt of
the previously issued financial statements.
1. If steps taken, issue new / amended report with EOM/ OM para.
2. If steps not taken, then take appropriate steps to prevent reliance on the auditor's report.

3 more question from S.A Book page No: 66

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