Subsequent events-2 (CAF 9 MIND MAP)-Audit report
The work of the exterior auditor in this region is enclosed by ISA 560 consequential events.
The
objectives of the auditor, as affirmed in ISA 560 are as go behind:
The auditor
should acquire satisfactory, fitting evidence about whether measures occurring
between the date of the monetary statements.
And the date
of the audit report is fittingly reproduced in those monetary statements.
The auditor
should also react fittingly to essentials that become known to him behind the
date of the audit description.
That, had
they been known to him at that date, may have reason him to modify his report.
This means
that audit measures must be considered and execute.
So as to believe
all vital transactions happening after the reporting era.
This means
that the audit work does not stop with proceedings only up to the end of the coverage
era.
There
are two key dates after the end of the reporting era:
The date of
the audit description and the date that the monetary statements are issued:
1. Before the matter
of the assessment description, the auditor should aggressively look for noteworthy
subsequent events.
This is sometimes referred to as an energetic evaluation.
2. After the issue of the assessment details (and up to the time that the monetary declaration are issued).
The auditor has to believe the collision of any noteworthy ensuing events that come to his notice.
However, he does not have to appear for these events aggressively. This is sometimes referred to
as a reactive evaluation.