Subsequent Events & Final Review

Question 1

After YE up to Report Issue

Answer 1

ACTIVE DUTY
1. Inspect post year mgmt accounts
2. Inspect board minutes
3. Discuss with mgmt
4. Written reps

Question 2

After Report issued but before AGM

Answer 2

Passive Duty- If fact becomes known about condition present at ye

1. Recall audit report
2. FS updated
3. Re-issue audit report (EOM para)

Question 3

Directors Responsibilities in GC

Answer 3

Assess going concern
Prepare CF Forecast
Prepare FS
GC basis, MURTGC, Break up Basis

Question 4

Auditor’s Responsibilities in GC

Answer 4

1. Do we agree with mgmts assesment?
2. Audit procedures- revie CF forecast- reasonable assumptions?
3. Ensure FS. prepared appropriately- impact on report

Question 5

Written Representation

Answer 5

Support evidence obtained by auditor on
* Going concern
* Significant judgments
* Law regs
* Litigation claims
* Fraud
* Misstatement
* Related parties
* Subsequent events

Question 6

Final Review of Audit File

Answer 6

Performed by audit partner
Review evidence collecrtd to support conclusion =.
materiality in aggregate
Ensure ISA’s followed.

Question 7

Review of FS

Answer 7

• Disclosure checklist
• Final analytical procedures- confirm understanding of client.

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