SA 560 Summary Auditing Standards on Subsequent Events

1. ‘Subsequent Events’ refers to those significant events occurring between the balance sheet

date & the date of the audit report, whose consequential effects should be taken into

consideration for the preparation of the F/S.

2. Treatment: Such events up to the date of the auditor's report may require adjustment of or

disclosure in the financial statements

3. Audit Procedures: The auditor should perform audit procedures to obtain sufficient &

appropriate audit evidence that all such have been identified.

4. The procedures to identify such events would include the following:

a. Reading minutes

b. Reading the entity's latest available interim financial statements.

c. Enquiring of the entity's lawyers concerning litigation and claims.

d. Inquiring of management as to whether any subsequent events have occurred after the

b/s date which might affect the F.S.

5. When the management does not disclose/adjust for such events, the auditor should express

a qualified opinion or an adverse opinion as appropriate.