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Subsequent Events under SA 560 - events between FS date and report date must be:
AIdentified by the auditor and considered for adjustment or disclosure
BIgnored
CReported only if material to revenue
DDisclosed only in next year
Answer & Solution
Correct answer: A. Identified by the auditor and considered for adjustment or disclosure
1. SA 560 requires identification of subsequent events between FS date and audit report date.
2. Adjusting events (existed at FS date) → adjustment; non-adjusting → disclosure.
3. Post-report subsequent events have separate procedures (SA 560.10-17).
_Source: ICAI BoS CA Final Paper 3, Ch 6 "Standards on Auditing and Professional Ethics"_
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