Scope of this Auditing Standard
This Auditing Standard deals with the auditor’s responsibilities relating to subsequent events in an audit of a financial report. It does not deal with matters relating to the auditor’s responsibilities for other information obtained after the date of the auditor’s report, which are addressed in ASA 720. However, such other information may bring to light a subsequent event that is within the scope of this Auditing Standard. (Ref: Para. A1).
A financial report may be affected by certain events that occur after the date of the financial report. Many financial reporting frameworks specifically refer to such events. Such financial reporting frameworks ordinarily identify two types of events:
- Those that provide evidence of conditions that existed at the date of the financial report; and
- Those that provide evidence of conditions that arose after the date of the financial report.
ASA 700 explains that the date of the auditor’s report informs the reader that the auditor has considered the effect of events and transactions of which the auditor becomes aware and that occurred up to that date.
[Deleted by the AUASB. Refer Aus 0.3]
See, for example, Accounting Standard AASB 110 Events After the Reporting Date.