Hello everyoneI want to know that whether all types of subsequent events be considered by the audit…
Hello everyone
I want to know that whether all types of subsequent events be considered by the auditor in his attest function
As per standards on auditing 560, the auditor should consider the effect of subsequent events on the financial statements and the auditor's report. However, its adjustment depends upon whether the event falls in the category of ‘adjusting event’ or ‘non-adjusting event’.
Further, accounting Standard 4 states that events occurring after the date of the balance sheet are of two types, viz., adjusting events which provide further evidence of conditions that existed at the date of the balance sheet; and, non-adjusting events are those which are indicative of conditions that arose subsequent to the date of the balance sheet.
