TAILIEUCHUNG - Lecture Auditing and assurance services (6/e) - Chapter 11: Completing the audit

In this chapter, the learning objectives are: Identify major activities performed by auditors in completing the substantive procedures following the date of the financial statements; understand the role of attorney letters in evaluating litigation, claims, and assessments; explain why auditors obtain written representations and identify the key components of written representations;. | Auditing & Assurance Services, 6e Chapter 11 Completing the Audit “It ain’t over till it’s over.” – Yogi Berra, former catcher for the New York Yankees 11- Timeline for Major Activities in Audit Date of the auditors’ report (audit completion date) Beginning of year Year-End Date (date of the financial statements) Audit report release date Interim testing (tests of controls and substantive procedures) Complete substantive procedures Attorney’s letters Written representations Going-concern assessment Adjusting journal entries Audit documentation review Subsequent events Subsequently discovered facts Subsequently discovered facts Omitted audit procedures Management letter Communications with those charged with governance 11- Completing Substantive Procedures Roll-forward procedures: Extend work from interim period to date of the financial statements Perform analytical procedures to identify unusual or unexpected relationships not previously identified Review accounts for “miscellaneous”, “other,” and “clearing” accounts (may relate to earnings management) Evaluate management estimates and process for developing estimates for reasonableness 11- Procedures for Litigation, Claims, and Assessments Inquiry of clients Review minutes of meetings of stockholders, directors, and committees Review contracts, loan agreements, and correspondence from taxing and governmental agencies Obtain information concerning guarantees from bank confirmations Review documentation related to legal services Attorney’s letters 11- Attorney’s Letters Contents of Attorney’s Letter Responsibilities for Attorney’s Letter Listing of pending litigation, claims, and assessments Description of each item or case included in the listing Evaluation of the likelihood of an unfavorable outcome Estimate of the range of potential loss Understanding regarding unasserted claims Auditors Initiate request for attorney letter Send letter to attorney including information related to .

• Kế toán - Kiểm toán
• Assurance services
• Financial statement audit
• Auditing and assurance services
• Auditing environment
• Completing the audit
• Management estimates
• Assurance services profession
• Auditing services
• Audit process
• Assurance framework
• Accounting information
• Professional standards
• Auditing standards
• Financial statement auditing
• Auditing business processes
• Auditing internal control
• Internal auditing services
• Contemporary auditing environment
• Attestation engagements
• Account balances
• Structure of the profession
• Audit firms
• 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
• Adjusting events
• Financial report
• Auditor’s reporting obligations
• Professional reporting obligations
• Prospective financial information
• Highlight information
• Institute of internal auditors
• Government accounting
• Reporting duties