F8-复习-18

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Overall review of evidence
—ISA 520 Analytical procedures
—Must be used during the review stage of the audit Analytical Procedures can be used throughout the whole audit (2012.6考题） Planning stage: identify unusual trends which may indicate audit risks. Used as a substantive procedure to gain audit evidence Final review stage when audit manager should ensure they have sufficient appropriate audit evidence
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Written representations 2－Examples
•Related party relationships and transactions are properly accounted for and disclosed •All subsequent events requiring disclosure or adjustment have been disclosed
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Written representations 1
— Written representations are more reliable than oral representations.
— However, written representations are from internal source and on their own they don’t provide sufficient appropriate audit evidence about the issues they relate to.
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ห้องสมุดไป่ตู้
Auditor’s duties for subsequent events 2
—After FS issued, if auditor becomes aware of a fact that existed at the date of the audit report and, if known then, might have caused the auditor to modify the report: —Discuss with management —If management issue revised accounts, issue new auditor’s report, referring to previous report —If management do not take appropriate action, auditor should take steps to prevent reliance on the report, eg speak at AGM or resign
This is a licenced copy of BPP Material, intended solely for the use of the agreed licence holder.
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ISA 580 Written representations 4
Chapter 18 Audit review and finalisation
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Overview
Overall review of evidence
Uncorrected misstatements
Audit review and finalisation
Subsequent events Going concern
Written representations
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Uncorrected misstatements
—Schedule maintained of errors identified that have not been corrected by the client —Consider whether material in aggregate
— The auditor obtains written representations from management concerning its responsibilities and to support other audit evidence where necessary.
This is a licenced copy of BPP Material, intended solely for the use of the agreed licence holder.
This is a licenced copy of BPP Material, intended solely for the use of the agreed licence holder.
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Going concern – audit procedures
—Analysing and discussing forecasts with directors —Analysing and discussing latest available interim financial statements
or adjusted •Management has provided the auditors with all information relevant to the
preparation and presentation of the financial statements •Management has provided the auditors with unrestricted access to those within
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Auditor’s duties for subsequent events 1
—Up to date of auditor’s report:
—Active duty so perform necessary procedures —After report but before FS issued, if auditor becomes aware of a fact that may materially affect the FS: —Discuss with management —If management does not amend FS, and audit report has not been released to the client, express qualified or adverse opinion
the entity •All transactions have been recorded in the accounting records and are reflected in the financial statements
ISA 580 Written representations 3
Slide 207
Subsequent Events 2
Audit field work
Year end date
Auditor’s report issued
F/S issued
AGM
Active duty
Passive duty
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— Usually signed by senior executive officer and senior financial officer on behalf of board.
— Dated – after all other audit work completed but before signing of the auditor’s report.
Procedures
— Throughout the fieldwork, the audit team will note any areas where representations may be required. — During the final review stage, the auditors will produce a draft representation letter.
If client refuses to sign: — Auditor should write letter setting out his understanding and ask for management confirmation.
— If management does not reply, auditor should follow up to ascertain that his understanding is correct.
— Discuss letter with client. Management will review the draft. — The management produces a written representation on their letterhead and addresses to the auditor.