Audit Procedures for Subsequent Events
How Auditors Search for Subsequent Events
Auditors perform specific procedures between the balance sheet date and the audit report date to identify significant subsequent events.
- Read interim financial statements.
- Review board of directors' meeting minutes.
- Inquire of management and legal counsel.
- Examine significant transactions occurring after year-end.
- Review subsequent cash receipts and payments.
Tip
Most subsequent event procedures are performed near the completion of the audit.
Summary
Auditors actively search for events that may require adjustments or disclosures before issuing the audit report.