Author: Yovan Alfredo Saavedra Cabrejo
In accordance with ISA 560, the financial statements may be affected by certain events that occur after the date of the financial statements. Many financial reporting frameworks refer specifically to such facts. These financial reporting frameworks typically identify two types of events:
- Those that provide evidence of conditions that existed at the date of the financial statements; and
- Those that provide evidence of conditions that arose after the date of the financial statements.
(…) The objectives of the auditor are: a) To 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 in accordance with the applicable financial reporting framework; and b) To respond appropriately to 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.
In accordance with the auditor’s responsibilities regarding the validation of subsequent events, appropriate audit procedures established by the standard must be carried out to ensure that subsequent events; If they exist, they have the corresponding treatment and are considered in the audit report.
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