Wiley Practitioner's Guide to GAAS 2020

23AU-C 560 Subsequent Events and Subsequently Discovered Facts

Scope

Definitions of Terms

Objectives of AU-C Section 560

Overview

Requirements

Subsequent Events

Subsequently Discovered Facts Known to the Auditor before the Report Release Date

Subsequently Discovered Facts Known to the Auditor after the Report Release Date

Reissuance of Predecessor Auditor’s Report

AU-C 560 Illustration—Subsequent Events Checklist

SCOPE

AU-C 560 provides guidance on subsequent events and subsequently discovered facts for:

• Current auditors and
• Predecessor auditors when reissuing a report on previously issued financial statements presented on a comparative basis.

(AU-C 560.01)

DEFINITIONS OF TERMS

Source: AU-C 560.07. For definitions related to this standard, see Appendix A, “Definitions of Terms”: Date of the auditor’s report, Date of the financial statements, Subsequent events, Subsequently discovered facts.

OBJECTIVES OF AU-C SECTION 560

The objectives of the auditor are to

1. 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
2. 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, might ...