ASA 560 - Subsequent Events - April 2006
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Introduction
4 The purpose of this Auditing Standard is to establish mandatory requirements and to provide explanatory guidance on the auditor’s responsibility regarding subsequent events. In this Auditing Standard, the term “subsequent events” is used to refer to both events occurring between the reporting date and the date of the auditor’s report, and facts discovered after the date of the auditor’s report.
5 The auditor shall consider the effect of subsequent events on the financial report and on the auditor’s report.
6 Australian Accounting Standard AASB 110 Events After the Balance Sheet Date deals with the treatment in a financial report of events, both favourable and unfavourable, that occur between the reporting date and the date when the financial report is authorised for issue and identifies two types of events:
(a) those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); or
(b) those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date).