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COMPLETING THE AUDIT - Coggle Diagram
COMPLETING THE AUDIT
Basic Elements of An auditor's Report
management's responsibility for financial statements
auditors' responsibility for audit of financial statements
key audit matters
other reporting responsibilities
basis for opinion
name of engagement partner
auditor's opinion
signature of auditor
addressee
auditor's address
title
date of auditor's report
Independent Auditor's Report
ISA 701 - Communicate key audit matters in independent auditor's report
ISA 705 - Modifications to the opinion in independent auditor's report
ISA 700 - Forming an opinion and reporting on Financial Statements
ISA 706 - Emphasis on matter paragraphs and other matter paragpraphs in independent auditor's report
final stage of audit process and written communication of audit findings to shareholders
may be read by those who use information in financial statements
require to report to members of comoany
important to adopt conventional and uniform wording in auditor's report
Objective of Communicate with those charged with governance
provide timely observation arise from audit that significant and relevant with their responsibility
promote effective two-way communication
obtain information relevant to the audit
communicate clearly responsibility of the auditor in relation to the financial statement audit, overview of the planned scope and timing of the audit
Function of other documents
Disclosure checklist or outstanding checklist
check on the outstanding matters
Working Paper
Retain audit documentation for 7 years from the date of completion of the engagement
Retain all documents that “form the basis of the audit or review
include in audit file significant matters for any document created, sent or received
Management letter
advise client on the weakness of internal control and waiting for management response before signing the audit report
Differences between Management and TCWG
TCWG
refer to those within entity that have responsibility on accountability of the entity and strategic direction of entity
responsible for overseeing strategic direction of entity and obligations relate to accountability of entity
accountable to ensure entity achieve its objectives, financial reporting and report to interested parties
supervise work done by entity and approve financial statements
Management
responsible to perform day to day functions and in making financial statements
comprises of officers that perform senior managerial functions
responsible for achieving objective of entity and have authority to establish policies and decisions regarding the objectives
refer to those within entity that having executive responsibility about code of conduct of entity