@@amandalovestoaudit I'm studying Chartered Accountant (India). Course is relatable and to be frank audit was nightmare for me.. thanks to you.. it's not anymore. 😊😊
Hi Amanda, thanks for your very useful videos! I'm glad to have found your channel. I'd like to ask you about this scenario. (I've found subsequent events sometimes confusing.) After financial statements have been published, the auditor discovers that a substantial part of the sales revenues were from a related party, which resulted in the revenues materially overstated. During the audit, the auditor did not notice the existence of the related party relationship. Question 1: Is the discovery of the fraudulent reporting of the sales transactions between the related parties after the issue of the financial statements considered a "subsequent event"? Or is it simply an insufficient audit done to find out about the existence of the related party relationship? ISA 560 says subsequent events are "Events occurring between the date of the financial statements and the date of the auditor's report, and facts that become known to the auditor after the date of the auditor's report." but my textbook and other websites say subsequent events are those occurring between the financial statement date and the date of the financial statements issuance. Question 2: Are facts that become known after the issuance of financial statements (Period 3 in your video) also considered "subsequent events"? Many thanks!
A great question Ashok! For those unfamiliar with the paragraph: “For an audit engagement conducted under the Corporations Act 2001, management, and those charged with governance, are prohibited from restricting an amendment of the financial report to the effects of the subsequent event or events causing that amendment. Consequently, the auditor is prohibited from restricting audit procedures as required under paragraph 11(b)(i) of this Auditing Standard to such an amendment.” This means mgmt must be transparent about subsequent events and cannot restrict what is reported. Similarly - the auditor cannot opt out of doing more audit procedures if required due to the sub event.
if i had incurred sales on the last month of 10million on 25th december and on 15th march there is sales return of 5 million audit report signed on 1st april Whether is it called as subsequent event require adjustment Please answer
Thank You so much Amanda, I am a CA student from India and your videos help me a lot. Glad that I found you.
Thx a lot Amanda l'm writing AA in march and l found this video more helpful😘
Absolutely love these lectures , very useful for my Audit paper .
Thanku so much Amanda
Charted Accountant(CA) student from India :)
Good luck Naman!
@@amandalovestoaudit thanku so much:)
Great work Amanda .
Thank you!
Thanku Dr. Amanda.. your videos really helps me in preparing for Audit paper.
Thanks Kunal! Are you studying for ACCA? The CPA?
@@amandalovestoaudit I'm studying Chartered Accountant (India). Course is relatable and to be frank audit was nightmare for me.. thanks to you.. it's not anymore. 😊😊
That is great to hear 😊
Hi Amanda, thanks for your very useful videos! I'm glad to have found your channel.
I'd like to ask you about this scenario. (I've found subsequent events sometimes confusing.)
After financial statements have been published, the auditor discovers that a substantial part of the sales revenues were from a related party, which resulted in the revenues materially overstated. During the audit, the auditor did not notice the existence of the related party relationship.
Question 1: Is the discovery of the fraudulent reporting of the sales transactions between the related parties after the issue of the financial statements considered a "subsequent event"? Or is it simply an insufficient audit done to find out about the existence of the related party relationship?
ISA 560 says subsequent events are "Events occurring between the date of the financial statements and the date of the auditor's report, and facts that become known to the auditor after the date of the auditor's report." but my textbook and other websites say subsequent events are those occurring between the financial statement date and the date of the financial statements issuance.
Question 2: Are facts that become known after the issuance of financial statements (Period 3 in your video) also considered "subsequent events"?
Many thanks!
Thank you Dr Amanda
You’re welcome 😊
content here is really great and useful please keep up
from uganda
thank you madam
Can you please explain the para 12 (applicable only to australian firms) ?
A great question Ashok! For those unfamiliar with the paragraph:
“For an audit engagement conducted under the Corporations Act 2001, management, and those charged with governance, are prohibited from restricting an amendment of the financial report to the effects of the subsequent event or events causing that amendment. Consequently, the auditor is prohibited from restricting audit procedures as required under paragraph 11(b)(i) of this Auditing Standard to such an amendment.”
This means mgmt must be transparent about subsequent events and cannot restrict what is reported. Similarly - the auditor cannot opt out of doing more audit procedures if required due to the sub event.
Where can one find an IFRS/IAS interpretation playlist with your quality :)
Check out the Mastering IFRS channel ☺️
if i had incurred sales on the last month of 10million on 25th december
and on 15th march there is sales return of 5 million
audit report signed on 1st april
Whether is it called as subsequent event require adjustment
Please answer
What is your interpretation? Share your thoughts first ☺️