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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Completion and final review

Orchid plc's auditor has completed fieldwork and wishes to identify events between the period end and the date of the auditor's report. Which procedure is specifically required by ISA 560 for this purpose?

The required procedures include inquiring of management about subsequent events and reading minutes of meetings held after the period end, along with reading the latest interim statements. These are designed to identify events between the period end and the report date that may need adjustment or disclosure.

  1. AInspecting the minutes of meetings held after the period end and inquiring of management whether any subsequent events have occurredCorrect
  2. BRe-performing the year-end inventory count
  3. CSending confirmations to all customers at the date of the report
  4. DReviewing only the budget for the next financial year

Explanation

ISA 560 requires procedures such as obtaining an understanding of management's procedures for identifying subsequent events, inquiring of management and those charged with governance, reading minutes of meetings held after the period end, and reading the latest interim financial statements. Inventory recounts and wide confirmations are not required for this purpose.

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