The Impact of the Events Subsequent to the Date of the Balance Sheet on the Position and Actions of the Independent External Auditor

Abstract

The events subsequent to the date of the balance sheet should be taken into account by the independent external auditor due to its importance and the ability of these events to have a positive financial impact on the results displayed by the financial statements in addition to helping the independent external auditor express his own technical judgment to provide a just representation of the financial statements based on the clients status.

Moreover, these events may reveal certain circumstances that can help the independent external auditor undertake important decisions and prepare to undertake other decisions based on the results of the audits carried out and how to handle such events.

Therefore, we have decided to make a modest effort to reveal the nature of these events, their impact and the procedures required to be undertaken by the independent external auditor to detect and evaluate it, to determine the professional procedures based on it, so as to ensure the accuracy of the clients financial statement integrity from any possible cause of misleading to the users financial statements and in order for the independent external auditor to ensure that his reports correspond to the results emerging from these events.