Audit Completion

Question 1

How can an auditor determine whether disclosures have been properly made?

Answer 1

Use a checklist of disclosures

Question 1

What are the 2 main steps in a financial statements review?

Answer 1

1. Do the FS comply with CA06 and accounting standards?
2. Do the financial statements make sense?

Question 2

How can an auditor check that the FS makes sense?
IIC

Answer 2

Use APs for:
Interpretation - FS reviewed, considering absolute figures and ratios
Investigation - unusual movements / numbers identified as audit risk, answers documented in WPs
Corroboration - can’s find answers? Further work required.

Question 3

The auditor should accumulate misstatements identified during the audit and:
IRDS

Answer 3

Inform management
Reassess materiality
Determine whether uncorrected misstatements are, individually / aggregate
Seek WR from management to confirm the effect of uncorrected misstatements is immaterial

Question 4

Should non-compulsory information be disclosed in the Financial statements E.g. Sustainability

Answer 4

Information important to a user’s understanding should be considered if it contributes to MM