What is a post period event? Divided into several periods

The three stages of the post-period events are not the same, and the situation is as follows:

1. The first period of negotiation: from the date of the financial statement to the date of the audit report.

2. The second period: from the date of the audit report to the date before the date of the financial statements. Zhikai.

3. The third period: after the date of the financial statements.

Proactive identification of post-period events in the first period means that the CPA should design and implement audit procedures to obtain sufficient and appropriate audit evidence to ascertain that all matters occurring between the date of the financial statements and the date of the auditor's report that require adjustment or disclosure in the financial statements have been identified.

Passive identification of the second period of post-period events is after the date of the auditor's report, and the CPA is not obliged to carry out any audit procedures on the financial statements.

There is no obligation to identify the post-period events of the third period, and the facts known after the date of the financial statements are post-period events of the third period, and the certified public accountants are not obligated to carry out any audit procedures on the financial statements.

Post-period events refer to the slag matters that occurred between the accounting statements and the date of the audit report, as well as the facts found after the audit report.

Post-period events refer to the events that occurred between the accounting statements and the date of the audit report and the facts discovered after the date of the audit report.

(1) Category 1 post-period matters. Events that can provide supplementary evidence of existing circumstances at the balance sheet date are referred to as Category I post-period events. Such post-period events have a direct impact on the amount of the audited entity's accounting statements, and their existence or occurrence will cause the auditee to make necessary adjustments to the accounting statements.

It mainly includes: the value of an asset is proved to be a loss or permanent impairment after the closing date;

compensation that has been determined to have been received or paid;

the occurrence of a return of sale;

Actions filed on or before the balance sheet date are closed with an amount different from the amount registered in the balance sheet;

Debt restructuring that is under negotiation on or before the balance sheet date and an agreement has been reached after the closing date;

There were significant inaccuracies in the estimation of the accrued benefits of long-term contracts at the balance sheet date.

2) Category II post-period matters. Events that do not affect the amount of accounting statements but may affect the correct understanding of accounting statements are called the second type of post-period events. The second type of post-period events occur after the balance sheet date, which does not directly affect the financial position of the audited entity on the balance sheet date and the operating results of the relevant accounting year, but if it is not explained, it may cause the users of the accounting statements to misunderstand and make wrong judgments on the current financial situation and future business prospects of the audited entity.

Therefore, the auditor should submit the matters that may affect the correct understanding of the accounting statements to the audited unit. These include:

significant fundraising activities after the balance sheet date, such as issuances** and bonds;

Significant investments and purchases after the balance sheet date, such as business combinations or long-term equity investments;

significant changes in foreign exchange rates after the balance sheet date;

loss of assets due to natural disasters after the balance sheet date;

The market value of an asset occurs after the balance sheet date**, such as the market value of short-term investments** or the market value of inventory**;

Closure of claims and lawsuits due to events occurring after the balance sheet date;

Significant changes in the business policy, business items or business environment of the audited entity after the balance sheet date, such as expanding the scale of operation.