Page 161 - Auditing Standards

As of December 15, 2017
the disclosure required by this paragraph may be combined with the report language described in

paragraphs .88 and .91. The auditor may present the combined language either as a separate paragraph
or as part of the paragraph that identifies the material weakness.

Subsequent Events

.93 Changes in internal control over financial reporting or other factors that might significantly affect

internal control over financial reporting might occur subsequent to the date as of which internal control over
financial reporting is being audited but before the date of the auditor's report. The auditor should inquire of
management whether there were any such changes or factors and obtain written representations from

management relating to such matters, as described in paragraph .75h.

.94 To obtain additional information about whether changes have occurred that might affect the
effectiveness of the company's internal control over financial reporting and, therefore, the auditor's report, the

auditor should inquire about and examine, for this subsequent period, the following -

Relevant internal audit (or similar functions, such as loan review in a financial institution) reports

issued during the subsequent period,

Independent auditor reports (if other than the auditor's) of deficiencies in internal control,

Regulatory agency reports on the company's internal control over financial reporting, and

Information about the effectiveness of the company's internal control over financial reporting
obtained through other engagements.

.95 The auditor might inquire about and examine other documents for the subsequent period. Paragraphs
.01 through .09 of AS 2801, Subsequent Events , provide direction on subsequent events for a financial

statement audit that also may be helpful to the auditor performing an audit of internal control over financial
reporting.

.96 If the auditor obtains knowledge about subsequent events that materially and adversely affect the

effectiveness of the company's internal control over financial reporting as of the date specified in the
assessment, the auditor should issue an adverse opinion on internal control over financial reporting (and
follow the direction in paragraph .C2 if management's assessment states that internal control over financial

reporting is effective). If the auditor is unable to determine the effect of the subsequent event on the
effectiveness of the company's internal control over financial reporting, the auditor should disclaim an opinion.
As described in paragraph .C13, the auditor should disclaim an opinion on management's disclosures about

corrective actions taken by the company after the date of management's assessment, if any.

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