ACCA Audit and Assurance (F8) Practice Exam 2026 – The Complete All-in-One Guide to Achieve Exam Success

The determination of subsequent events before the audit report is signed is best implemented through inquiries of management and examination of the minutes of board meetings. This approach enables auditors to gather relevant information regarding events or transactions that occur after the reporting period but before the authorization of the financial statements, which could impact the financial position or results of operations.

Inquiring with management provides insights into any significant events that may have emerged, such as changes in fiscal performance or legal matters that could arise post-reporting period. Additionally, reviewing minutes from board meetings can reveal critical discussions about the organization’s operational and financial health, decisions made that affect future performance, or other material events that should be considered.

Other methods, while useful for different aspects of audit work, do not provide the same direct insights into subsequent events. Reviewing financial statements alone may not reveal new information about events post-reporting period. Consulting with external stakeholders may also provide valuable information, but may not be as comprehensive or reliable as direct inquiries into the management's perspective and internal documentation. Analyzing market trends could inform the auditor about broader economic conditions but again lacks the specificity of information that management discussions and board meeting records provide regarding the entity's particular circumstances.