What major considerations sould the auditor take into account in determining how extensive the review of subsequent events should be?

Subsequent events occur after a reporting period, but before the financial statements have been issued or are available to be issued for that period. Such events may not be required to include in the financial statements depending on the situation.

There are a few major considerations the auditor should take into account in determining how extensive the subsequent events review should be. The company's financial strength and stability of earnings should be taken into consideration, as well as the effectiveness of the company's internal controls.

Another consideration would be the number and significance of the adjustments made by the auditor.

The major considerations the auditor should take into account in determining how extensive the subsequent events review should be are: the companys financial strength and stability of earnings the effectiveness of the companys internal controls the number and significance of the adjustments made by the auditor the length of time between the balance sheet date and the completion of the audit changes in key personnel auditors of public companies should be aware that pcaob standard 2 requires them to also inquire about changes in internal control over financial reporting occurring subsequent to the end of the fiscal period that might significantly affect internal control over financial reporting.