Balance sheet Audit Report Date SUBSEQUENT DISCOVERY OF SUBSEQUENT EVENTS FACTS Requires Adjustment Original event took place before audit report date Transaction or event took place before the balance Auditor discovered event sheet date after the audit report date. An event or transaction If auditor had known of occurred between balance facts existing on th sheet and audit report date balance sheet date he or that affects the valuation of she would have required the original transaction adjustment or issued a different。 pinion REQUIRES DISCLOSURE REQUIRES RECALL OF FINANCIAL STATEMENTS An event or transaction that occurred between balance sheet and audit report date is so significant that it requires disclosure even though it does not directly affect current period transactions Arens, Loebbecke, Auditing, &/E o2000 by Prentice Hall, IlArens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc