Why Does the Auditor Inquire About Events After Year End?

Why Does the Auditor Inquire About Events After Year End?

Accounting and auditing standards require that auditors are responsible to disclose certain events in the audit report up to the date of the report.  Subsequent events are those events that occur between the financial statement year-end and the date of the audit report. Thus, we ask the question at the time we get the records from you AND again right before the report is ready to be issued (unless those two events are just a few weeks apart…then we may just ask once). But, don’t wait for us to ask – if you know of something, let us know!! Some of the possible events that an auditor needs to know about:

This is the reason that we ask for the following: