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SUBSEQUENT EVENT (events between date of FS & date of auditor's…
SUBSEQUENT EVENT
events between date of FS & date of auditor's report
Adjusting
existed @ date of FS
after YE & has effect
affect of going concern
[IAS 10]
Disposal of sub & incurred loss = sub already impaired
Non-adjusting
existed after date of FS
REPORTING
Going concern
vs
Factual insolvency
Companies Act
S4: Solvency & Liquidity test
solvency indicates - factual solvency
liquidity indicates - commercial solvency
S22: Reckless trading prohibitated
intention to defraud
co is factually/commercially insolvent - danger exist
constitute
RI
Going concern
[ISA 570]
Use is
not
appropriate
(par 21)
adverse audit opinion
Use is appropriate
(par 22)
NO
material misstatement
unqualified audit opinion
Material Uncertainty
NOTED
adequate disclosure
unqualified with "material uncertainty related to going concern" [par 32, IE 1]
inadequate disclosure
qualified opinion (incomplete disclosure) [par A.32, IE 2] :
Adverse opinion (entity omitted disclosure) [par A.32 IE 3]
MULTIPLE
uncertainties
disclaimer of opinion [ISA 705, IE 5]
Audit report & opinions
[ISA 700 revised]
Introductory paragraph
Auditor's opinion
Basis of opinion
Going concern
Key audit matters
Other info
Responsibilities of FS
Auditor's responsibilities
Other reporting responsibilities
1 more item...
ISA 700 par 41
explicitly state;
objectives of audit
*reasonable assurance = high level of assurance
misstatements arise from fraud/error & are considered material
key audit matters communicated with TCWG
explicitly communicate:
who responsible for preparing FS
going concern basis appropriate
ISA 720
ISA 701
ISA 570: require = separate section
material uncertainty separate section:
Material uncertainty related to going concern
included for all auditor's opinions
audit conducted ito ISA
refer - section audit responsibilities
statement: complied with all ethical requirements, specifically
independence
auditor exercised professional scepticism throughout audit
audit evidence sufficient & appropriate
identify entity whose AFS audited
state = AFS audited unless disclaimer
title of each statement in AFS (SFP, OCI, SCE)
refer to notes + accounting policies
date covered
audit opinion