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?
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.
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