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Completion of Audit: 5 - 7: (5. Post SFP events: (Up to Auditor's…
Completion of Audit: 5 - 7:
5. Post SFP events:
Up to Auditor's report:
Procedures:
a) Review Man procedures b) Minutes c) Int AFS budgets, etc d) Legal notices e) 3rd part notices f) Post SFP date events enq from man
After Auditor's Report:
a) Consider if AFS need adjustment b) Discuss with man i) If man changes: Audit changes & issue new report date no earlier than revised AFS ii) Refuse to change 1. AR not issued: Qualify 2. Issued: Ask not send 3rd parties 3. Released: Take steps to limit reliance
Post AFS issue:
If change same as After AR except issue emphasis of matter. Refuse to change: i) Inform intent to take legal action ii) Take steps to limit reliance
Factors determining auditor's actions:
a) Man steps b) Certainty people will rely c) Time lapse since AR issue d) Next AFS e) Sub AFS f) Legal position
Steps to prevent reliance:
a) AGM b) Inform no reliance can be placed on AR c) Media annoucement d) Inform reg bodies e) s45 APA f) Legal advice
6. Concluding & Reporting:
Reporting Definitions:
Unqualified Opinion:
No Modification, Emphasis matter or Other matter
Unmodified Opinion:
AFS are i) Free from mms ii) FP iii) Conform to stated framework iv) Comply with relevant statutory reqs
Misstatements:
a) Consider both Quant & Qual effect b) Pervasive i) Affect several accounts ii) Substantial even though single acc iii) Fundamental to users understanding
Modified Opinion:
a) Not free as a whole from MMs b) Unable to obtain sufficient appropriate evidence
Qualifyiied Opinon:
Material not pervasive.
Adverse Opion:
Material & Pervasive
Audit Report:
1.Title & Adressee:
2. Auditor's opinion:
State AFS audited, components, ISAs, IFRS, period under audit
3. Basis of Opinion:
ISAs, Auditor indp, ethical codes
4. KAMs:
Reporting KAMs:
a)Most significance during audit b) Listed entities
Which matters?:
a) Significant audit attention b) Sig risks c) Sig judgement used d) Sig events e) Importance to users
PY KAM:
No obligation to change but reconsider if still KAM
KAM & AO:
a)NOT sub for AO b) Matter cause mod not KAM
Describing KAM:
a) Simple english, entity specific, relevant disc b) State why its a KAM, how addressed, ref disc c) Overview of procedures, outcomes, observations
6. Auditors' responsibilities
a) Reasonable assurance b) Concept of materiality c) Brief explanation of audit process with emphasis on acc pol assessment, conclusion on gc
5. Management's responsibilities:
7: Other auditing responsibilities:
8. SUpp info:
9. Auditor sig:
10. Date & Address:
Decisions affecting audit opinion:
1st consideration Suff & Adq evidence:
If not then relates to FP = Mod Op or not FP = Emphasis of Matter
2nd consideration avoid mod:
a)Discuss with management and agree on facts, further info b) Request adj c) If mod still necessary notify man with specific wording of mod
3rd consideration:
a) Materially mistated i) Material only = QO ii) Material & Pervasive = Adverse Op b) Inability obtain sufficient evidence i) Material: Q) ii) Material & Pervasive: Disclaimer
Emphasis of Matter & Other Matter:
Emphasis of matter:
Highlights matter correctly dealth with but of great importance
Other Matter:
Matters not directly affecting the AFS but helps in understanding the auditor's opinion and work
Concluding & Reporting:
Opinion-QC review-Reasonableness of info - Actual AFS v Draft - Report (man, board, shareholders)
7. Post Audit Review:
a) Staff evaluation b) Important matters for future audits & doc next year WPs c) Viability re-egagement d) Invoice