SA 560

Save Share

This query is : Resolved

NASEEMUNNISA BEGUM (Querist)

07 January 2011 As per SA 560 auditor verify wheather the adjusting/non adjusting events adjusted or not?
or he wants to adjust it when he comes to know of it?
suppose closing stock at the end of the year 31.03.2010 is 30000 and after the balance sheet date but before the date of audit report stock sold for 10000.Then what the auditor can do?

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

07 January 2011 Nothing to do. this is not an adjusting event.
Adjusting event means the those events which provide further evidence of conditions that existed at the balance sheet date.

further when auditor finds any adjusting event , he should consider whether such events are properly accounted for in the financial statements. When the management does not account for such events that the auditor believes should be accounted for, the auditor should express a qualified opinion or an adverse opinion, as appropriate.

NASEEMUNNISA BEGUM

NASEEMUNNISA BEGUM (Querist)

07 January 2011 that means we only verify it and give appropriate report not to adjust it

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

07 January 2011 yes , only verify it no need to adjust it

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now