Procedures to Identify Subsequent Events

• Obtain understanding of procedures management performs to identify subsequent events.

• Inquire of management and those charged with governance.

• Read minutes of meetings of owners, management, and those charged with governance.

• Review entity’s interim financial statements.

Types of Subsequent Events

Provide new information about conditions existing at date of the financial statements.

• Adjust financial statements to reflect new information.

Involve events that arose following the date of the financial statements.

• Disclose in financial statements.

Subsequently Discovered Facts

If discovered prior to audit report release date, perform procedures related to items:

• Revise date of auditors’ reports to reflect new completion date.

• Dual date auditors’ reports.

Following audit report release date: If facts would result in revision of auditors’ report or F/S and individuals are relying on F/S.

• Notify individuals relying on F/S.

• Issue revised F/S which provide disclosure of facts.