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8 Cards in this Set
- Front
- Back
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Items to Review before closing the Audit. Hint: 1, 2, 3, 4, 5, 6, 7, 8, 9 |
1. Roll Forward 2. Revenue/Expense 3. Attorney Letters. 4. Management Letters 5. Subsequent Events 6. Going-Concern 7. Adjustments 8. Waived Adjustments 9. Audit Review |
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What are something you should look into/do when completing the audit in relation to Revenue/Expenses Hint: 1, 2, 3 |
1. Analytical Review 2. Unusual? 3. Material |
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What are Attorney Letters? |
A communication prepared by the client but sent by the Auditor to the client's attorney that details all pending litigation, claims, and assessments against the client and that requests the attorney to comment on these matters directly to the client's auditors. |
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What are the items Specific to the Management Letter Hint: 1, 2, 3, 4, 5, 6, 7, 8 |
1. Client's Letterhead 2. Addressed to the Auditors 3. Has Audit Completion Date 4. Signature of Official 5. Responsibility for financial statements 6. Made Available 7. Response to Internal Controls 8. Management Flaw? |
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What are the two types of subsequent Events and explain them. |
1. Type 1 - They existed on Balance Sheet Date. 2. Type 2 - They Occurred after the Balance Sheet Date. |
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What is Dual Dating for Subsequent Events. |
When an auditor completion date is for example 02/28/16 but there a material subsequent event that occurred on 3/7/16 the Auditor wishes to disclose as well. So the report date is written as "Report date 02/28/16 Except for note 3/7/16 " |
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Going Concern includes Hint: 1, 2, 3, 4 |
1. Debt Ratios 2. Debt to Equity 3. Contracts 4. Supplies |
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If Subsequent Discover of Facts occurs and they are material what should the Auditor do?
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First try to inform the client, ask the client to inform all users that the audited F/S are not to be used. And send out a revised reports to all users as soon as the revision has been made. If the Client does not comply, The auditor should. 1. Notify all users 2. Notify Business 3. Notify Regulators. |
