i) Events Occurring Before the Auditor’s Report is Signed:

• • The auditor has an active duty to perform audit procedures to identify subsequent events up to the date of the auditor’s report. These procedures should provide sufficient and appropriate evidence that all events requiring adjustment or disclosure have been identified.
  • Audit procedures include:
    • Reviewing management procedures for identifying subsequent events.
    • Reading board minutes and inquiries to management.
    • Reviewing correspondence with legal counsel regarding pending litigation.
  • The auditor should ensure all relevant events are properly accounted for or disclosed in the financial statements.

ii) Events Occurring After the Auditor’s Report is Signed but Before It Is Issued:

• • The auditor does not have a responsibility to perform audit procedures or make any inquiries about the financial statements or subsequent events after the report date. However, if the auditor becomes aware of a fact that could materially affect the financial statements, they should:
    • Discuss the matter with management.
    • Determine whether the financial statements need amendment.
    • Consider the implications for the audit report if management refuses to amend.
  • If the financial statements are amended, the auditor should perform additional procedures and issue a new report. If not amended, the auditor might need to modify their opinion.