Impacts of the timing of the discovery of a subsequent event on the auditors’ approach to subsequent events

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This study investigates the underlying causes affecting auditors’ approaches to subsequent events. As auditors are required to perform the majority of subsequent events procedures near the due date of the audit report, I examine whether auditors are less likely to make adjustments or disclosures regarding subsequent events that occur after the audit completion, but before issuing the audit report. Results indicate that auditors were less likely to adjust Type I events that occurred after audit completion when the risk was low, but not when the risk was high. This was not the case for Type II events, which only require disclosure.

Original languageEnglish
Pages (from-to)4121-4146
Number of pages26
JournalAccounting & Finance
Issue number4
Publication statusPublished - Dec 2020


  • Adjustment
  • Audit completion
  • Auditor judgment
  • Disclosure
  • Subsequent events

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