AU 561: Subsequent Discovery of Facts Existing at the Date of the Auditor’s Report1

AU-C 560: Subsequent Events and Subsequently Discovered Facts


Original Pronouncement Statement on Auditing Procedure (SAP) 41 (codified in Statement on Auditing Standards [SAS] 1) and SAS 98.
Effective Date These statements currently are effective.
Applicability The auditor’s discovery of facts, after he or she has issued the report on the financial statements, that:
  • Existed at the date of the report
  • Were not known by the auditor at the date of the report
  • Would have required the auditor to change the report had he or she been aware of them
NOTE: The section does not apply to matters identified in a subsequent events review that covers the period after the financial statements but before the original issuance date of the auditor’s report (see Section 560, Subsequent Events).
The section applies only to audits; however, Statements on Standards for Accounting and Review Services (SSARSs) refer to it in situations in which the accountant becomes aware of facts existing at the date of the report after he or she issued a compilation or review report. The accountant might wish to consider the section in an analogous situation in a compilation or review engagement.


SAS No. 122, Codification of Auditing Standards and Procedures, is effective for audits of financial statements with periods ending on or after ...

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