These events fall into two types: adjusting events, which provide evidence of conditions that existed at the end of the period (for example, the settlement of a lawsuit that existed at period end), and non-adjusting events, which arise after the end of the period (for example, a fire after period end). The latter are disclosed in the notes if material.
The auditor performs procedures to identify these events up to the date of the report.
Source: TAS 10, BDS 560
Related terms
Going concernPreparing financial statements on the assumption that the entity will continue its operations for the foreseeable future.Provisions (TAS 37)Liabilities of uncertain timing or amount; recognised when there is a present obligation arising from a past event, an outflow of resources is probable and a reliable estimate can be made.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.Assurance engagementAn engagement providing assurance, against specified criteria, on a subject matter other than an audit or review of historical financial information.
Last updated: October 22, 2026 · This definition is for general information only.