Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Chapter 11
Completing the Audit
It aint over till its over. Yogi Berra, former catcher for the New York Yankees
11-2
Completing substantive procedures Attorneys letters Written representations Going-concern assessment Adjusting journal entries Audit documentation review Subsequent events
Subsequently discovered facts Omitted audit procedures Management letter Communications with those charged with governance
11-3
Evaluate management estimates and process for developing estimates for reasonableness
11-4
Attorneys Letters
Responsibilities for Attorneys Letter
Auditors Initiate request for attorney letter
Client Prepare listing, description, and evaluation of litigation, claims, and assessments for letter Send letter to attorney including information related to litigation, claims, and assessments
Attorney Respond to auditors regarding clients description of litigation, claims, and assessments contained in attorney letter
Written Representations
Provided by management to auditors
Dated using date of auditors reports (audit completion date)
Broad purpose
Impress upon management its primary responsibility for the financial statements May establish auditors defense if a question related to inquiries subsequently arises
11-7
11-8
Consider whether evidence obtained during audit raises questions about ability to continue as a going concern
Accumulate identified misstatements and evaluate need for adjustments to financial statements
Rollover method considers the current period income effect(s) of misstatements Iron curtain method considers the aggregate effect of the adjustments on the entitys balance sheet
11-9
Subsequent Events
Subsequent events occur between the date of the financial statements and date of the auditors report Subsequently discovered facts become known after the date of the auditors report
11-10
11-11
Auditors Response
If discovered prior to date of auditors reports, perform procedures and evaluate disclosure
If discovered prior to audit report release date, perform procedures
Revise date of auditors reports to reflect new completion date
If discovered following audit report release date: If facts would result in revision of auditors report or F/S and individuals are relying on F/S
Notify individuals relying on F/S Issue revised F/S which provide disclosure of facts
11-12
Omitted Procedures
Perform procedures if:
Omitted procedures are important Individuals are currently relying on financial statements and auditors reports
If previous opinion can be supported, no further action necessary If previous opinion cannot be supported
Withdraw the original report Issue revised reports Inform persons currently relying on the financial statements
11-13
Uncorrected misstatements
Disagreements with management
11-14
11-15
Auditors
Oral or written
Auditors
After audit
Oral or written
11-16