ASA 545 - Auditing Fair Value Measurements and Disclosures - April 2006
Subsequent EventsSubsequent Events
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Subsequent Events
61 The auditor shall consider the effect of subsequent events on the fair value measurements and disclosures in the financial report.
62 Transactions and events that occur after period-end but prior to completion of the audit, may provide appropriate audit evidence regarding the fair value measurements made by management. For example, a sale of investment property shortly after the period-end may provide audit evidence relating to the fair value measurement.
63 In the period after a financial report period-end, however, circumstances may change from those existing at the period-end. Fair value information after the period-end may reflect events occurring after the period-end and not the circumstances existing at the balance sheet date. For example, the prices of actively traded marketable securities that change after the period-end ordinarily do not constitute appropriate audit evidence of the values of the securities that existed at the period-end. The auditor complies with ASA 560 Subsequent Events when evaluating audit evidence relating to such events.