You are auditing the financial statements of Hope Engineering, a limited company, for the year ending 31 March 20X8. The partner in charge of the audit instructs you to carry out a review of the company's activities since the financial year end. Mr Smith, the managing director of Hope Engineering, overhears the conversation with the partner and is surprised that you are examining accounting information which relates to the next accounting period

Explain the nature and purpose of a subsequent events review(6 marks)

Describe the audit procedures which would be carried out in order to identify any material subsequent events.