Interpreting the Auditing Standard on SUBSEQUENT EVENTS ISA/ASA560

Subsequent events is one of the areas students have the most difficulty - watch me walk through ASA/ISA560

My previous Sub Events videos

My ultimate audit video study guide is available here

If you have questions about ASA/ISA 560, add them in the comments below.

#StandardsExplained #AuditEvidence #SubsequentEvents #ISA560 #ASA560 #ILoveAudit #Auditing

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[piriyadharshineesethuraman]

Thank You so much Amanda, I am a CA student from India and your videos help me a lot. Glad that I found you.

[nikuzemukundenkasecarine]

Thx a lot Amanda l'm writing AA in march and l found this video more helpful😘

[namanjain.]

Absolutely love these lectures, very useful for my Audit paper .
Thanku so much Amanda
Charted Accountant(CA) student from India :)

[kunalmehta]

Thanku Dr. Amanda.. your videos really helps me in preparing for Audit paper.

[mu]

Hi Amanda, thanks for your very useful videos! I'm glad to have found your channel.
I'd like to ask you about this scenario. (I've found subsequent events sometimes confusing.)

After financial statements have been published, the auditor discovers that a substantial part of the sales revenues were from a related party, which resulted in the revenues materially overstated. During the audit, the auditor did not notice the existence of the related party relationship.

Question 1: Is the discovery of the fraudulent reporting of the sales transactions between the related parties after the issue of the financial statements considered a "subsequent event"? Or is it simply an insufficient audit done to find out about the existence of the related party relationship?

ISA 560 says subsequent events are "Events occurring between the date of the financial statements and the date of the auditor's report, and facts that become known to the auditor after the date of the auditor's report." but my textbook and other websites say subsequent events are those occurring between the financial statement date and the date of the financial statements issuance.

Question 2: Are facts that become known after the issuance of financial statements (Period 3 in your video) also considered "subsequent events"?

Many thanks!

[mukisadavid]

content here is really great and useful please keep up

from uganda

[ashokprajapathi]

Can you please explain the para 12 (applicable only to australian firms) ?

[Am]

Where can one find an IFRS/IAS interpretation playlist with your quality :)

[salmanansari]

if i had incurred sales on the last month of 10million on 25th december

and on 15th march there is sales return of 5 million

audit report signed on 1st april


Whether is it called as subsequent event require adjustment

Please answer