Question

Discuss to what extent the auditor is responsible for identifying and acting on events after the reporting date?

Answer 1

Solution. The reporting date indicates the date of completion of auditing and publication of reports. An auditor as in ISA 560 subsequent events after reporting date, the auditor needs to collect and record all evidences in relation to auditing reports to prove his/her active participation under audit committee supervisor, company's management and regulations, before the final approval and signing of reports and financial statements.

An auditor can test, calculate, analyze and report pertaining to any fraud activity encountered in statements; legal proceedings for the same; transfer of reevaluated data in reports; amendment of financial reports in case of any changes,new information,mistakes or new events found by the auditor between the period. The auditor needs to include all the above mentioned changes in reports along with revised dates.