Chapter 18: Completing the audit process:
Effects of post Statement of Financial Position Events
After complete the audit, some review activities will done to ensure the client's financial statements are correct and high-quality audit
Chapter 18: Completing the audit process:
Effects of post Statement of Financial Position Events
After complete the audit, some review activities will done to ensure the client's financial statements are correct and high-quality audit
Reviewing Subsequent Events
回顾后续的事件
Reviewing the client significant Accounting Estimates
审查客户重大会计估计.
Review Adequacy and Disclosures
审查充分性和披露
Complete Engagement Quality Review
完整的互动质量审查
Conducting a final analytical review of financial statement
对财务报表进行最终分析审查
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Reviewing the Client Accounting - Disclosure / Loss Contingencies
审查客户会计 - 披露/损失或有事项
Impact of Events on Audit Report
Types of Subsequent Events
Occur between the date of the statement of financial position and the date of financial statement are authorised for issue
Provides evidence about conditions that existed at the date of the financial statement.财务报表日期存在的情况
Financial Statement number: Adjusted to reflect this information and Footnote disclosure be necessary
Examples:
(a) Customer - Bankruptcy - Deteriorating financial condition existed prior to the balance sheet date
在资产负债表日期之前存在恶化的财务状况
(b) Lawsuit(Saman) settled for different amount than accrual.
诉讼以与应计金额不同的金额解决
(c) Stock dividend or split. 股票股息或拆分
Accounting Treatment - Contingent Losses
Probable, Reasonable estimated and remote should be accrued and disclosed because common practice should be disclosed in the notes to the financial statements.
应应计并披露可能的、合理的估计和远程的数据,因为通常的做法应在财务报表附注中披露
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Exists at the date of the statement of financial position where the outcome will only be confirmed by the occurrence (or non-occurrence) of some future event which is outside the control of the business.
存在于财务状况表之日,其结果只能通过企业无法控制的未来事件的发生(或不发生)来确认.
Source of Evidence
Responsibilities
Examples of Contingencies
Guaratees of debts of other
Obligations of banks under standby letters of Credit
Litigation, claims and assessment
Agreement to repurchase receivables that has been sold.
Threat of expropriation of assets in a foreign country
Purchase and Sale COCmmitments
Objective
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Provides opportunities for the entity to "manage" or even manipulate earning
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Provides an objective evaluation on or before the date of auditor's report of the significant judgements the engagement team made and the conclusion reached in formulating the auditor's report
Auditor shall design and perform analytical procedures near the end of the audit that assist informing an overall conclusion as to whether the financial statements are consistent with the auditor’s understanding of the entity
Single Date
The date of events = The date of the audit report
Dual Date
The dates of the original audit report and events to disclose the work done only on the event after the original audit report date
Management
Auditor
Identifying, evaluating and accounting
Determining the client has properly identifies, accounted and disclosed all material contingency.