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CHAPTER 19 - Coggle Diagram

- - - - Preparation of FS
      - All transactions have been recorded & reflected therein
      - All relevant info and access has been provided to the auditor as agreed in the terms of engagement
  - - - But
        
        From an internal source
        
        On their own, they do not provide sufficient appropriate audit evidence
    - - Where knowledge of facts is confined to management
        
        Management future plans / intention that may affect classifications of assets /liabilities
      - One judgment matters
        
        Whether receivables are doubtful debts or not
  - - - Discuss the contents of letters with management first
        
        Print on the client's headed paper & to be signed by management
        
        Dated as close as possible to the signing of auditor's report but not after
  - - - Discuss with management
      - Re-evaluate the integrity of management & evaluate the effect this may have on the reliability of rep. & audit evidence in general
      - Take appropriate actions
        
        Determine the impact on auditor's report
- - - - FS are prepared using acceptable accounting policies , consistently applied and appropriate to the entity
      - Info in FS are compatible with audit findings
      - Adequate disclosure & proper classification and presentation of info
  - - - Diff. bet. reported amount in FS and amount should have been if using applicable FR framework
  - - - With it being identified individually
    - - Whether individually or in aggregate to FS as a whole
        
        Things to be included in the rep.
        
        Amount below which misstatements would be regarded as clearly trivial
        
        All misstatements during the audit and whether they have been corrected
        
        Auditor's conclusion as to whether uncorrected misstatements are material and the basis for that conclusion