TAILIEUCHUNG - Lecture Auditing and assurance services in Australia: Chapter 12 - Gay, Simnett

Chapter 12 - Completion and review. After studying this chapter you should be able to: explain the significance of the date of the auditor’s report and the audit engagement; define subsequent events of audit interest, and describe the audit procedures applied specifically to identify such events; describe the nature and purpose of written representations obtained from the entity’s management and solicitors;. | CHAPTER 12 COMPLETION AND REVIEW THE NATURE OF COMPLETION AND REVIEW PROCEDURES DATE OF AUDIT REPORT Important because it establishes date of auditor’s responsibility for knowledge of events that should be reflected in financial report. Audit report should be dated when it is actually signed, and no earlier than date of directors’ declaration. Ensures financial report was completed and formally accepted by officers of company prior to auditor expressing an opinion. AUDIT PROCEDURES AFTER BALANCE DATE Many audit procedures performed after balance date as normal tests of balances, .: Cut-off tests Collectability of accounts receivable determined by subsequent payment Out-of-period liability search ANALYTICAL PROCEDURES AFTER BALANCE DATE Auditor also required to apply analytical procedures at or near completion of audit to: Assist in overall review of reasonableness of financial report Ensure financial report is consistent with auditor’s knowledge of entity Corroborate conclusions formed during audit SUBSEQUENT EVENTS REVIEW AASB 1002 (IAS 10) indicates that financial report should reflect the effects of certain events occurring up to time of completion, which is defined as date of approval of financial report by owners or controlling management. Auditor’s responsibility to consider subsequent events extended up to date on which auditor signs audit report. TYPES OF EVENTS SUBSEQUENT TO BALANCE DATE Two types of events may materially affect financial reports. These are: Type 1 or adjusting events Type 2 or disclosing events TYPE 1 OR ADJUSTING EVENTS Events, both favourable and unfavourable, that provide evidence of, or further elucidate, conditions that existed at balance date Financial effect of such events needs to be brought to account (amounts in the financial statements might need to be adjusted) EXAMPLES OF ADJUSTING EVENTS Subsequent collection of a material account receivable that has been treated as uncollectable at balance

• Kế toán - Kiểm toán
• Assurance services profession
• Assurance services
• Auditing services
• Audit process
• Adjusting events
• Financial report
• Structure of the profession
• Audit firms
• Assurance framework
• Accounting information
• Professional status
• Regulation of auditing
• The auditing profession
• Corporate governance
• Professional ethics
• Legal liability
• Liability to clients
• Financial repport audit process
• Financial report assertions
• The business
• Strategic business risk
• Inherent risk assessment
• Inherent risk
• Internal control structure
• Assessing control risk
• Tests of controls
• Sales cycle
• Substantive tests
• Substantive tests of transactions
• Audit sampling
• Sampling theory
• Auditor’s reporting obligations
• Professional reporting obligations
• Prospective financial information
• Highlight information
• Institute of internal auditors
• Government accounting
• Reporting duties
• E commerce systems
• Business risk assessments