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The discovery of existing facts.

If so, this slight of hand could result in extra fraudulent compensation.

Alternatively, the auditor may use dual dating in the audit report.

Detection of fraud or errors after the reporting period may indicate that the financial statements are misstated.

In comparative statements when two or more years are presented , the correction of a prior period error affects the prior period financial statements and opening balances in the current year.

Declaration of bankruptcy by a long outstanding receivable after the reporting date may provide evidence that the receivable was impaired at the reporting date.

Or, depending on the facts, withdrawal might be necessary.

Provide a description of the nature of the error.

What if, for example, the recording of the 2018 payables would have adversely affected the company's compliance with debt covenants? Examples of adjusting events include:• The staff focused on the securities laws and regulatory practices in certain jurisdictions, which require an entity to reissue its previously issued audited annual financial statements in connection with an offering document when the most recently filed interim financial statements reflect matters that are accounted for retrospectively under the applicable accounting standards.

Below I explain what a correction of an error is, when it's appropriate, disclosure requirements, and implications for auditors.

Then the understatement of payables may have been intentional.

The adjustment should not affect net income in 2019.