Subsequent Events and Subsequently Discovered Facts

Free CPA AUD (Auditing & Attestation) lesson in Performing Further Procedures and Obtaining Evidence. 14 min read, ~2,142 words.

AU-C 560 governs subsequent events (between balance sheet date and audit report date) and subsequently discovered facts (after the audit report date). Type 1 recognized: the condition existed at the balance sheet date, so adjust the financial statements. Type 2 nonrecognized: the condition arose after the balance sheet date, so...

What this lesson covers

• Content
• Example 1
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• III.H1

Browse all free CPA AUD lessons or jump into free CPA AUD practice questions.