Lesson: Subsequently Discovered Facts on SOC Engagements

In this lesson, Nick Palazzolo, CPA, delves into the complex topic of subsequently discovered facts during SOC engagements and their potential impacts on financial reporting and audits. He starts by setting the backdrop with the timing of financial statement preparation and report issuance, discussing what happens if significant events occur between the completion of the statements and the issuing of the report. Nick clearly outlines the procedural responses required if, for example, a key internal control fails or a significant error is found after report issuance. With a focus on continuous auditor-client relationships, he explains how these discoveries can necessitate revisions in auditor’s reports or additional communication with stakeholders. This lesson covers the range of scenarios that might trigger such responses, emphasizing the importance of reassessing prior conclusions and possibly issuing revised or supplemental reports.