Financial statements aim to provide a true and fair view of a company’s current financial position. In this frame, subsequent events play a key role because they occur in the period between financial year-end and the date financial statements are issued. Material subsequent events, if not adequately presented, can increase the risk of restatements after the issuance of financial statements. This is crucial because capital market participants are highly sensitive to such restatements which can impair future expected earnings and increase a company’s cost of capital. Therefore, it is highly relevant that auditors adequately evaluate and resolve subsequent event evidence. However, based on prior research, auditors face immense challenges with regards to this task. Thus, the PhD project aims first to investigate potential judgmental biases in the evaluation of such information. In a second step, the project will focus on the adequate resolution of subsequent events taking into consideration that auditors are facing time pressure and pressure by the client. The findings will then be used to propose decision-aids for auditors as well as potential regulatory improvements in order to enhance overall audit quality and finally provide a fair representation in financial statements.