Subsequent events
Inventory of finished goods

• Post year end revenue can be reviewed to check sales prices and therefore the net realisable value of inventories. A lack of post year end revenue may indicate that an allowance for obsolescence is needed.
• Correspondence with customers may provide evidence of product faults or other problems which may indicate that an allowance for returns or legal claims is needed.
• Credit notes issued after the year end may provide evidence of product faults which may indicate that an allowance for returns or obsolescence is needed.

Trade receivables

• Post year end cash receipts provide evidence as to the recoverability of year end balances.
• Correspondence with customers may provide evidence of disputes which may affect the recoverability of individual year end balances.

Trade payables

• Post year end payments to suppliers may provide evidence of unrecorded year end liabilities.
• Correspondence with suppliers may provide evidence of unrecorded year end liabilities.

Bank overdraft

• Post year end receipts and payments may provide evidence of the likelihood of the company staying within its overdraft facility (as, if it does not, and the facility is withdrawn or secured on key assets, then the going concern of the company may be in doubt).
• Correspondence with the bank may indicate whether support is ongoing or likely/about to be withdrawn.