Identify the Audit Procedures Normally Associated with Subsequent Events

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The Answer is 1.The procedures include:
-reviewing procedures that management has established to ensure that subsequent events are identified,
-reading minutes of the meetings of shareholders, those charged with governance, audit and executive committees held after the reporting date, and enquiring about matters discussed at meetings for which minutes are not yet available,
-reading the entity's latest available interim financial statements and, as considered necessary and appropriate, budgets, cash flow forecasts and other related management reports,
-enquiring of the entity's lawyers, and
-enquiring of management as to whether any subsequent events have occurred that may affect the financial statements.
2.When audit risk is unacceptable, the auditor should perform additional substantive tests or convince the client to make corrections necessary to reduce the risk of material misstatement to an acceptable level. If management does not make the adjustments as required then the auditor may decide to issue a qualified audit report.

Identify the Audit Procedures Normally Associated with Subsequent Events

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