What it is
The auditor’s responsibility for events after the balance sheet date runs to the date of the auditor’s report, and the entity’s evaluation under ASC 855 runs to the date the financial statements are issued or available to be issued. A memo that sets out both dates and the work between them gives the file a single place to show the cutoff of the audit.
The template lists the AU-C 560 procedures, including reading minutes, inquiring of management and legal counsel, reading the latest interim statements, reviewing post-year-end cash activity, covenant status and returns, and obtaining written representations. A table classifies each event as recognized or nonrecognized and records the accounting or disclosure. A final section handles facts that come to light after the report date.
When to use it
- Before dating the auditor’s report, and again if the report date moves.
- When a significant event occurred shortly after year-end.
- When the file needs one record of the evaluation date and its link to the disclosure.
What’s inside
- Dates: balance sheet, management evaluation date, report date and release date
- Ten procedures with date, result and reference
- Events table with recognized or nonrecognized classification and estimated effect
- Conclusion and the treatment of facts learned after the report date
Standard cited
This template follows AU-C 560 / ASC 855. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 560 explained.
Questions
What is the difference between a recognized and a nonrecognized subsequent event?
A recognized event provides additional evidence about conditions that existed at the balance sheet date, and the financial statements are adjusted. A nonrecognized event reflects conditions that arose after that date, and the statements are not adjusted but may need disclosure of the nature of the event and an estimate of its financial effect.
Which date does a non-SEC filer evaluate through?
The date the financial statements are issued or available to be issued, and it discloses the date through which subsequent events were evaluated and which of the two it is.
Does the auditor keep looking after the report is dated?
No obligation exists to perform procedures after the date of the auditor’s report. If the auditor learns of a fact that existed at that date and might have caused a revision of the report, AU-C 560 requires discussion with management and those charged with governance and further action as the standard sets out.
Does the auditor need a written representation about subsequent events?
Yes. AU-C 560 asks for written representations on whether all subsequent events requiring adjustment or disclosure have been adjusted or disclosed. The representation letter is dated as of the auditor’s report date.
Related templates
- Subsequent Events Checklist and Memo (AU-C 560 / ASC 855)
- Disclosure Checklist: Subsequent Events (ASC 855)
- Attorney Legal Letter Inquiry (AU-C 501 / ASC 450)
- Going Concern Evaluation Memo (AU-C 570 / ASC 205-40)
Last updated 11/05/2026. All free templates.