Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

RESPONSIBLE INDIVIDUAL REVIEW AND CONCLUSION A21-1

Objective: To ensure that all necessary procedures have been followed to form the audit opinion.

Initials and Date

1. I have reviewed in detail the financial statements and the supporting lead schedules on file. Yes
2. I have concluded on the overall review (A22). Yes
3. I have documented my decisions regarding the points brought to my attention (schedule reference Yes
).
4. I am satisfied that the plans detailed at section B were appropriate for this audit. Yes
5. I have confirmed that all my and the manager’s review points have been satisfactorily resolved (schedule Yes
reference ).
6. I am satisfied that all the points raised during the ethics review (A21-3) have been satisfactorily cleared. 1 Yes
7. I confirm that an Engagement Quality Control Review (where necessary) has been completed and that all N/A
matters raised have been satisfactorily cleared (A21-2).2
8. I confirm that appropriate safeguards have been implemented to address any ethical issues identified on Yes
B13 or throughout the audit.
9. I have discussed the audit and the accounts with senior representatives of the client as documented Yes
(schedule reference ).
10. Written representations have been received from management (and, where different, those charged with Yes
governance) as appropriate (A51).
11. I have considered the subsequent events review (A41), and I am satisfied that events occurring between Yes
the date of completion of A41 and the current date are correctly dealt with in the financial statements.
12. I am satisfied that adequate work has been performed and recorded with regard to going concern (A42). Yes
Given the level of concern, I concur that appropriate disclosure, if any, has been made in the financial
statements, and the audit report.
13. I am able to issue my audit opinion subject to the satisfactory completion of the procedures below. Yes

CONFIRMATION OF SIGNING / COMPLETION

14. The statement of financial position have been signed, approved and dated. Yes
15. Subsequent events have been considered up to the date of the audit report. Yes
16. The audit report has been signed and dated. Yes

CONCLUSIONS AND AUDIT OPINION

 the audit has been properly controlled, conducted and completed in accordance with the ISA+s and Ethical Standards;
 there is sufficient appropriate evidence to support the audit opinion; and
 In my opinion (tick as appropriate):
 I can give an unmodified opinion

 My opinion is modified and / or includes an Emphasis of Matter or Other Matter 3 paragraph in accordance with
the matters set out on the attached schedule (__________)

I have considered independence and our ability to perform the audit and in my opinion there [is / is no]* reason why we should not
accept re-appointment next year (see B12 and B13).

Audit Responsible Individual: ______________________________________ Date: _____________________________

* Delete as appropriate.
1
Where a review is required as part of the firm’s consultation procedures (on difficult or contentious matters) or a review by a
second partner / senior member of staff is required as part of the firm’s Ethical Standards safeguards.
2
For listed plc. clients and other criteria detailed in the firm’s procedures (eg. high risk audits) an Engagement Quality Control review
must be performed.
3 Where the prior period was not audited, an Other Matter paragraph shall state that the comparative financial statements are unaudited.

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

ENGAGEMENT QUALITY CONTROL REVIEW CHECKLIST A21-2

Objective: To provide an objective evaluation of the significant judgements made and the conclusions reached during the audit.

Comment Initials
For all listed plc clients and other criteria detailed in the firm’s procedures (eg. high
risk audits) an Engagement Quality Control (EQC) review must be performed.
Further guidance on the conduct of EQC reviews can be found in the procedures
manual.

17. Discuss significant matters arising during the assignment with the
engagement partner and other members of the team. Ascertain if there were
any other areas of particular difficulty and whether they are satisfied that
these have been properly addressed and resolved.
18. Review the financial statements and the proposed auditor’s report.
19. Review selected audit documentation relating to significant judgements and
conclusions reached. Consider whether the level of recorded audit work
carried out in the key areas is appropriate given the nature of the risks
involved.
20. Consider whether appropriate consultation has taken place on matters
involving differences of opinion or other difficult or contentious areas and
consider whether the conclusions drawn are reasonable.
21. Consider the corrected and uncorrected misstatements (including
adjustments the client would not allow) identified during the audit and
whether these items are significant enough to affect the truth and fairness of
the financial statements.
22. Consider whether all necessary reports have been made to relevant bodies
(management, board of directors etc.) concerning issues identified during the
audit.
23. Consider whether departures from applicable accounting standards,
necessary for the financial statements to give a true and fair view, are
reasonable.
24. Consider whether the audit complies with Ethical Standards including the
appropriateness and adequacy of safeguards applied.
25. Consider whether the engagement partner’s consideration of objectivity and
independence has been adequately recorded.
26. Consider whether all necessary disclosures have been made in respect of
contentious issues and that the wording of the audit report is reasonable
given the findings identified on the audit file.

Conclusion

This review has been completed before the audit report is issued and I have (tick as appropriate):

 No concern that the work, key decisions and judgements made and the conclusions reached were inappropriate

 Some concern that the work, key decisions and judgements made and the conclusions reached were inappropriate (see
schedule __________)

EQC Reviewer: _____________________________________________ Date: _____________________________

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

CONSULTATION / ETHICS REVIEW A21-3

Objective: To record the need for and extent of review required for consultation and / or Ethical Standards purposes and to
ensure that all matters arising have been satisfactorily dealt with.

Issue(s) arising from planning or later in the audit that require second partner / manager consultation:
Typically, such consultation (as required by paragraph 18 of ISA+220) may be required for difficult or contentious matters.

Reason(s) for a second partner / manager review to provide safeguards against identified Ethical Standards threats:
Refer to B13-1 and / or B13-2. Reasons sometimes include:
 Long association with the audit engagement
 Non-audit services provided to audit clients (explain
whether the review is of the audit or non-audit work)

Notes of discussions with the engagement partner and the rest of the audit team (where required):

Review points: Sch. Clearance Initials /

Record the areas reviewed and any queries arising. May include: Ref. Date
 Journals and unadjusted errors;
 Subjective areas;
 Management letters and other notes of communication with the
client;
 Audit summary memoranda.

Conclusion

All matters above have been properly cleared. Therefore (tick as appropriate):

 All difficult / contentious matters requiring consultation have been satisfactorily addressed

 All matters arising from my review to address the ethical threats identified on B13 or throughout the audit have
been satisfactorily addressed

Reviewer: _______________________________________________ Date: _____________________________

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

OVERALL REVIEW OF THE FINANCIAL STATEMENTS A22

Objective: To review the financial statements, in conjunction with the conclusions drawn from the other audit evidence
obtained, to give a reasonable basis for the opinion on the financial statements.

Consider whether: COMMENT INITIALS

1. Our documentation records how the financial statements agree or reconcile Yes
with the underlying accounting records.
2. The financial statements adequately reflect the information and explanations Yes
previously obtained and conclusions reached during the course of the audit.
3. The procedures reveal any new factors which may affect presentation or No new factors
disclosure.
4. Appropriate consultation on difficult or contentious matters has taken place Refer : A25
and whether appropriate conclusions have been drawn.
5. The results of final analytical procedures applied show that the financial Final analytical procedures
statements are consistent with our knowledge of the entity’s business. were consistent with the
knowledge of the business
6. Such review indicates previously unrecognised risk of material misstatement
due to fraud. If applicable, refer to notes on Audit Summary Memo (A25) and N/A
Review of Profit and Loss Account and Balance Sheet (A71).
7. The financial statements properly reflect matters which may have been Yes, related party
unduly influenced by the desire of those charged with governance to present transactions properly
matters in a favourable or unfavourable light. disclosed
8. The aggregate of uncorrected misstatements (including those arising from Potential impact of
bias in making accounting estimates) identified during the course of the audit aggregate uncorrected
and the preceding period’s audit if any (A27) has an impact on the financial misstatements is
statements or indicates deficiencies in internal controls. immaterial.
9. The information presented in the financial statements is in accordance with In accordance with IFRS as
statutory requirements. required by RERA
10. The accounting policies employed (including in comparative information) are Yes, in accordance with
in accordance with accounting standards, properly disclosed, consistently IFRS
applied and appropriate to the entity.
11. Comparative information has been agreed with the amounts and other Yes
disclosures presented in the preceding period or, where adjusted, that
appropriate disclosure has been made.
12. Any necessary departures from applicable accounting standards for the No such departure
financial statements to give a true and fair view have been properly reflected. observed.
13. The financial statements reflect the substance of the underlying transactions Yes
and not merely their form.
14. The directors’ report is consistent with the financial statements. No directors report. Service
charge audit

15. The other information in the financial statements appears to contain material Schedules for RERA
inconsistencies with the audited financial statements. (Refer to ISA+ 720A if matched with Financials
necessary.)

Conclusions: The audit objective above has been achieved and in my opinion the conclusions a reader might draw from these
financial statements are justified.

The directors’ report is consistent with the financial statements.

Responsible Individual: Date:

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

AUDIT SUMMARY MEMORANDUM A25

Objective: The objective of this memorandum is to record the key issues arising from the audit and assist the Responsible
Individual in confirming the audit opinion.

The form of this document is not prescriptive and extra pages should be added as required.

IMPORTANT
The following headings are likely to be useful in meeting the above objective:
(a) key points in accounts and audit (including whether the original risk assessments remain appropriate);
(b) key points from final analytical review (including indications of a previously unrecognised risk of fraud);
(c) areas of disagreement (either between different members of the audit team or with other people consulted);
(d) matters requiring Responsible Individual decision;
(e) matters requiring Responsible Individual confirmation;
(f) ethical issues;
(g) outstanding points affecting the audit opinion;
(h) recommended audit opinion;
(i) other outstanding matters not affecting the audit opinion;
(j) reconciliation of budgeted costs to actual fees;
(k) client service - opportunities identified.

Comment Sch Clearance Initials/

Ref Date

1. Material exception noted during field work
All such exceptions were cleared, except for the
below, by performing additional audit work
until we obtain adequate audit comfort.
Wherever required, asked client to pass
correction entries.

2. Internal control weaknesses. All observed weaknesses are addressed in the

Management letter – A/52

3. Bank confirmation Received

4 Related party confirmations. Pending

5. The Letter of Representation. All matters when sufficient appropriate

evidence did not exist are mentioned in LOR.

6. Accounting policies are not directly relating to any GAP

requirement and we audited the FS ensuring that accounts
are prepared based on the accounting policies adopted by
the management which are in line with IFRS.

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

AUDIT COMPLETION CHECKLIST A31-1

Objective: To ensure there are no outstanding matters in the audit procedures performed.

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

ISA+.para Yes, No or Comments

N/A
PLANNING REVIEW
16. Did we review and revise our plans as additional information became N/A No additional information
available? 300.10 received.
17. Where there was a change in the terms of the engagement, was there N/A No change
reasonable justification for this and was it confirmed in writing? 210.14-16
18. Was the audit scope free from all restrictions? 210.17 / Yes Free from restrictions
220.13
19. Have we updated the materiality schedule for the actual results and, Yes Ref:B41
where the levels set at the planning stage are no longer deemed 320.12-13
appropriate, has this been reflected in further work performed?
20. Have we confirmed the design and implementation of controls (eg. by Yes Revenue, & debtors,
walkthrough)? 300.13 payments and expenses
21. Where required as part of the audit approach, have we tested that key Yes Ref: PAF
control activities have operated effectively? 330.8
22. Where we have tested and relied upon the operating effectiveness of Yes Done
controls but we detected misstatements as part of our substantive 330.16
procedures that indicate the control was not operating effectively,
have we revised our approach accordingly?
23. Where we carried out interim audit procedures (whether substantive N/A Only year end audit carried
or controls testing) have we confirmed whether there were any 330.12&22 out.
significant changes and obtained sufficient evidence for the remaining
period?
24. Has the work undertaken throughout the audit substantiated our Yes Done
original risk assessments and / or have we amended our plans 315.31 /
accordingly? 330.17&23
25. For initial engagements only: Were we able to confirm opening N/A Second year audit
balances in accordance with our plans (B32-2)? 510.6
26. Was the audit conducted in accordance with the plans, were all points Yes Done
noted at the planning stage properly considered in the audit and do the 330.25
assessments of risks of material misstatement at the assertion level
remain appropriate?
SIGNIFICANT RISKS
27. For areas identified as significant risks (see B32 / B33 or the equivalent
section of the free-form planning memorandum), have we either: 330.21 Yes Done
 Tested the operating effectiveness of key controls (where
possible) supplemented by substantive procedures (either
analytical procedures or tests of detail); OR
 Performed substantive procedures only (but consisting of more
than just analytical procedures)?

28. Management override of controls – Due to the unpredictable nature of Yes Done
how this could occur, this is always a risk of material misstatement due 240.32
to fraud (and therefore a significant risk). Therefore, (see N section)
have we:
 Examined material journal entries and other adjustments made
330.20b
during the course of preparing the financial statements; AND
 Tested the appropriateness of journal entries and other
adjustments; AND 240.32a
 Reviewed accounting estimates for biases; AND
 Performed a retrospective review of management judgments 240.32b
related to significant accounting estimates in the previous period. 240.32c

AUDIT COMPLETION CHECKLIST (CONTINUED) A31-2

ISA+.para Yes, No or N/A Comments

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

Related parties
550.17&2 Yes
29. Where we have obtained information indicating the existence of 2 Done.
previously unidentified related party relationships and transactions,
have we:
 Shared relevant information with other team members;
 Obtained further information from management;
 Extended our substantive procedures;
 Revised our risk assessment; and
 (Where the non-disclosure by management appears intentional),
revised our assessment of risk due to fraud?

30. Where we have identified significant transactions outside the entity’s 550.16 Yes Done.
normal course of business, have we enquired about the nature of these
transactions and whether related parties could be involved?
Significant accounting estimates
31. Where accounting estimates give rise to a significant risk due to Yes Done.
estimation uncertainty, have we evaluated:
 How management have considered alternative assumptions and 540.15
how have they addressed estimation uncertainty;
 Whether the significant assumptions used are reasonable;
 Where relevant to the significant assumptions used
management’s intent and ability to carry out specific courses of
action?

Where not adequately addressed by management, have we developed 540.16

a range with which to evaluate the reasonableness of the accounting
estimate?

32. Where accounting estimates give rise to a significant risk due to 540.17 Yes Checked.
recognition and measurement criteria, have we sufficient evidence
about whether management’s decision to recognise accounting
estimates and the selected measurement basis are in accordance with
the applicable accounting framework?
33. Have we concluded on whether or not we believe the accounting 540.18-20 Yes Done.
estimates are reasonable and have been adequately disclosed in the
financial statements?
34. Whilst reviewing management’s judgments and decisions in making 540.21 No N/A
accounting estimates, if we identified any indications of possible
management bias have we responded accordingly?
EVIDENCE
35. Where the answer to any of questions in planning review above was Yes Done
“No”, have additional procedures been undertaken?
36. Have all important matters been documented in the working papers, Yes Done
particularly the nature and extent of procedures, reasoning on matters 230.8
of judgement and conclusions?
37. Where evidence is inconsistent or we have doubts over the reliability 240.13-14 Yes Done
of information used as evidence, have we undertaken modified or / 500.11 /
additional procedures to resolve the matter? 520.7
38. Has proper consultation taken place on all difficult and contentious No. None required.
areas and are the conclusions reached reasonable? 220.18
39. Have final analytical procedures been undertaken and comments on N/A Comments included with
significant fluctuations or unexpected relationships been recorded and 520.6 AR
corroborated? (Update a spreadsheet or proforma working paper as
appropriate.)

AUDIT COMPLETION CHECKLIST (CONTINUED) A31-3

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

ISA+.para Yes, No or Comments

N/A
40. Where any audit procedures have uncovered matters which may
indicate fraud or error, have we revised our risk assessment, extended 240.22 N/A
our procedures, recorded and reported as required?
41. Where any audit procedures have uncovered matters which may 250A.15, Yes Proper adjustments carried
indicate non-compliance with laws and regulations, have we gathered 18&21 out.
the necessary further information, evaluated the effect on the financial
statements and revised our risk assessment as appropriate?
42. Where relevant activities have been outsourced has sufficient evidence N/A
been obtained from the service organisation? 402.15
External confirmations
43. Have responses from all necessary external confirmation requests been Yes Confirmations not received from
received? If not, have we performed alternative procedures? 505.12 all sources. Alterative adapted.

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

44. Where we have doubts as to the reliability of a response, have we

obtained further evidence to resolve the doubt and considered the 505.10-11 N/A
consequences (including the risk of fraud)?
45. Where use has been made of the work performed by an expert, have N/A
we confirmed that the evidence is adequate? 620.12-13
46. Where the entity has an internal audit function, have we fulfilled the N/A
relevant requirements (see PF2-3)? 610.11-12
Misstatements
47. Has the summary of misstatements schedule (A27) been completed Yes Done
recording all identified misstatements other than those that are clearly 450.5
trivial?
48. Does this summary include all unadjusted misstatements brought N/A
forward from the previous period which do not reverse (ie. that have a 450.11b
cumulative effect)?
49. Where the nature and circumstances of identified misstatements 450.6 N/A
indicate that other misstatements may exist and on aggregate these
are close to materiality, have we revised the audit approach as
appropriate?
50. Where, on our request following identified misstatements, Yes. Checked records after
management have further examined and corrected transactions / 450.7 adjustments where carried
balances / disclosures, have we performed sufficient additional out.
procedures to determine whether misstatements remain?
51. Where a misstatement indicates the possibility of fraud, have we N/A
considered the implications of this on other aspects of the audit? 240.35&36
52. Where misstatements, individually or in combination, indicate a Yes. Communicated to the client.
deficiency in internal control have we considered their significance and 265.8&9
communicated them to the client as appropriate (A52)?
53. For all unadjusted misstatements, have we obtained a written N/A
representation from management confirming that they believe the 450.14
effects of such misstatements are immaterial [and, for accounting
periods ending before 15 December 2010, explaining their reasons for
not making the adjustments]?
54. Has the subsequent events programme (A41) been completed? 560.6 Yes
55. Have all going concern matters been discussed with management and N/A No going concern issues as
all discussions documented? Where matters indicate concern over the 570.11 these are notional trusts.
appropriateness of the going concern basis, have these been
summarised and concluded on (A42)?
56. Have we obtained sufficient evidence concerning opening balances and 510.6 / Yes.
comparative information? 710.8

AUDIT COMPLETION CHECKLIST (CONTINUED) A31-4

ISA+.para Yes, No or Comments

N/A
COMPLIANCE
57. Have statutory accounts and directors’ report been drafted and Yes A/11. No directors report.
referenced to the audit schedules? Service charge audit
58. Have abbreviated accounts been prepared, if required? N/A
59. Have we read the other information (including the directors’ report) 720A.6 N/A No other information in F/S.
and is it materially consistent with the audited financial statements?

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

60. In respect of the directors’ report, have we ensured that: 720B.8 N/A No director’s report.
 Any information taken directly from the financial statements has
been accurately included;
 Any information included in more detail than in the financial
statements has been agreed to the audit working papers or the
client’s accounting records; and
 Where any information presented is on a different basis to that
used in the financial statements, that basis is adequately disclosed
and that we have checked the reconciliation of the amounts.

61. Has a Companies Accounts checklist (A32) been completed? N/A Notional trust.
62. If required, has an Abbreviated Accounts checklist (A33) and / or a N/A
Group Accounts checklist (A34) been completed?
63. Where any exceptional items or prior year adjustments have been N/A
identified, have they been correctly disclosed?
64. Where there have been transactions with directors have these been N/A
disclosed in accordance with company law?
65. Have all ethical issues identified on B13 or throughout the audit been Yes All regulations complied with
summarised for the Responsible Individual?
66. Have we considered the need to complete or update customer due Yes Upto date
diligence procedures?
67. Have all staff acted in accordance with the firm’s anti-money Yes
laundering procedures? NB. Details of suspicious money laundering
activities should NOT be detailed on the audit file.
68. Where an objective of one or more ISA+s cannot be achieved, have we N/A
highlighted this as a significant matter and recorded our evaluation of 200.24
the effect on the audit opinion?
69. Where we have determined additional audit procedures are necessary, N/A
above and beyond those required in the ISA+s, have we obtained 200.21
sufficient appropriate evidence?
CLIENT SERVICE
70. Where additional service opportunities have been identified during the
audit, have such matters been summarised and brought to the N/A None identified
attention of the Responsible Individual?
CLIENT COMMUNICATION
71. Has the report to management been drafted and discussed with Yes Management letter done and
client’s management and, where different, those charged with 260.14-16 presented to management.
governance? Does this include, or have we communicated elsewhere,
all matters required by the ISA+s (see A52)?
72. Have the written representations of management been drafted? Do Yes ISA complied Letter of
they include all confirmations necessary as laid down by the ISA+s (see 580.9 Representation received.
A51)?

AUDIT COMPLETION CHECKLIST (CONTINUED) A31-5

ISA+.para Yes, No or Comments

N/A
73. Where we have doubts as to the reliability of written representations
or where requested written representations have not been provided, 580.16-19 N/A
have we revised our assessments and responded appropriately?
74. Has the two-way communication between the auditor and those Yes Regular formal/informal
charged with governance been adequate for an effective audit? If not, 260.22 meetings are held whenever
have we evaluated the effect on risk? needed.
75. Where we identify or suspect fraud, have we considered whether there N/A
is a responsibility to report to an external third party (eg. regulatory 240.43
authority)?

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

76. Where we have not been provided with sufficient information on N/A
compliance with material laws and regulations, have we considered 250A.19
obtaining legal advice?
SUMMARY FOR RESPONSIBLE INDIVIDUAL
77. Have points for Responsible Individual clearance or an Audit Summary
memorandum (A25) been drafted? Yes See A25
ADMINISTRATION
78. Has a points forward schedule been drafted? N/A No such matters observed.
79. Has the budget been updated for actual cost? Yes
80. Has next years staffing requirement been considered and recorded? Yes
81. Has the permanent file been updated for information acquired during Yes
the audit work?

Prepared by: Date:

Reviewed by: Date:

Yes, No or Comments
N/A
POST MANAGER REVIEW COMPLETION PROCEDURES
82. Does the file contain evidence of having been reviewed by the manager? Yes
83. Have all review points been satisfactorily cleared? Yes
84. Have staff appraisal forms been completed? Yes

Conclusion: All matters above have been properly addressed.

Prepared by: Date:

Reviewed by: Date:

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

SUBSEQUENT EVENTS CHECKLIST A41

Objective: To obtain sufficient appropriate audit evidence that all subsequent events up to the date of the report that require
adjustment of, or disclosure in, the financial statements have been identified and properly reflected therein, in
accordance with ISA+ 560.

ISA+ 560 requires the procedures below to be undertaken but does not require additional audit procedures on matters on which they
have previously formed satisfactory conclusions. The nature and extent of the procedures is affected by the risk assessment.

Comments Sch Ref Initials/Date

85. Consider the effectiveness of the procedures management has There are regular board &
established to ensure that subsequent events are identified. managemt meetings and
all matters arose requiring
accounting adjustment are
done
86. Read minutes of meetings (of owners, management and those charged Done
with governance) held after the period end.
87. Read any interim financial statements (including, if applicable, budgets Meeting minutes available
or cash flow projections).
88. If applicable, enquire (or extend previous enquiries) with solicitors N/A
about the current status of disputes and claims.
89. Examine relevant accounting records (eg. cash book, bank statements Done with subsequent
and journal entries) since the period end. checking
90. Enquire of management (and if appropriate those charged with No such items
governance) whether any subsequent events have occurred. May
include:
 Matters discussed at meetings for which minutes are not yet
available.
 New commitments, borrowings or guarantees entered into.
 Sales (or planned sales) of assets.
 Changes (or planned changes) in capital or debt instruments or any
plans or agreements to merge or liquidate.
 Events relevant to the recoverability of assets.
 Unusual accounting adjustments (made or contemplated).
 Events have occurred or are likely to occur which may bring into
question the appropriateness of accounting policies adopted in the
financial statements.
 Events have occurred that are relevant to the measurement of
estimates, provisions or contingencies.
 Knowledge of relevant events or conditions beyond the period of
management’s assessment of the appropriateness of the going
concern basis.
91. Other:

Conclusions: Subsequent events have been reviewed and, where appropriate, have been properly adjusted and / or disclosed in
the financial statements.

Prepared by: Date:

Reviewed by: Date:

Further subsequent events work to the date of the audit report (as summarised below) has been performed.

Updated by: Date:

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

GOING CONCERN WORK PROGRAMME A42-1

Objective: To obtain sufficient appropriate evidence regarding the appropriateness of management’s use of the going concern
assumption, to conclude on whether a material uncertainty 1 exists and to determine the implications for the audit
report.

Section Comment Sch ref Init/

N/A date
If no formal information is available:
92. Confirm that the lack of formal information is appropriate given the size of the
business and the level of concern identified.
93. Discuss with management the company’s position and record their plans and
projections.
94. Assist management in forming their view of the appropriateness of the going
concern basis.
If formal information is available:
95. Establish the period management have used in their formal assessment of the
appropriateness of the going concern basis and what they have used in their
assessment.
96. Consider whether management have used all relevant information in their
assessment.
97. Examine the forecasts, budgets and any other information available.
98. Establish whether the assumptions used in the preparation of the forecasts were
appropriate, by examining order books, contracts etc.
99. Consider whether the systems used for producing the information were adequate.
100. Consider how sensitive the information available is to changes in the assumptions.
Procedures where events or conditions have been identified which may suggest
material uncertainty:
101. Where management has not performed an assessment of going concern, request
that they do so.
102. Evaluate the efficacy and feasibility of management’s plans for future actions in
relation to its going concern assessment.
103. Consider whether any additional facts or information have become available since
the date management made its assessment.
104. Request written representations from management and, where applicable, those
charged with governance regarding plans for future action.
Other procedures to consider:
105. Consider the period management have paid particular attention to (whether or not
a formal assessment). Is it sufficient2?
106. Confirm the current financial headroom and consider the adequacy in the light of
the company’s plans.
107. Request a letter of postponement of directors’ loan accounts addressed to the
company.
108. Scrutinise the company’s correspondence and notes of conversations between the
directors and bankers.
109. Review terms of loan agreements and determine whether any have been
breached.
110. Write to the company’s bankers and assess their intentions.
111. Read minutes of meetings for references to financing difficulties.
112. Review the going concern planning checklist to ensure that the answers and
assessment recorded remain unchanged.
113. Review the results of the subsequent events work performed on A41 to ensure
that no further problems have been identified.

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Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

GOING CONCERN WORK PROGRAMME - CONTINUED A42-2

Section Comment Sch Init/

N/A ref date
114. Other action considered necessary:

Conclusions: Based on the evidence obtained, in our judgment, a material uncertainty 1 regarding going concern [does / does
not]* exist. As a result, the effect on the financial statements and audit report 2 is:

Tick the Disclosure in financial Effect on audit report Comment

relevant box statements
Unmodified audit opinion

 No material uncertainty - -
3
 Note is sufficient to explain Note -
that there is no material
uncertainty
 Material uncertainty Note3 Emphasis of matter
paragraph4
 Financial statements Note Possible emphasis of
prepared on a non-going matter paragraph
concern (eg. liquidation)
basis
Modified audit opinion

 Inadequate disclosure of Except for or adverse

material uncertainty opinion

 Disagreement about the Adverse opinion

application of the going
concern basis
 Limitation in scope5 Except for or disclaimer
opinion

1 A material uncertainty may arise from events or conditions that, individually or collectively, may cast significant doubt on the entity’s ability to
continue as a going concern. A material uncertainty exists where the size of its potential impact and likelihood of occurrence warrant appropriate
disclosure in the financial statements and audit report.
2 In all cases, if the period management paid particular attention to is less than one year from the date of management’s approval of the financial
statements, include in note to the financial statements or, failing that, in the audit report.
3 If a note is not included or the disclosure is inadequate in the financial statements then the audit report should be modified. Adequate disclosure
entails clearly describing the existence of a material uncertainty and the principal events or conditions that create this, together with
management’s plans to deal with these events or conditions.
4 The paragraph shall highlight the existence of a material uncertainty and draw attention to the note in the financial statements that discloses the
matter.
5 Due to inadequate procedures by management (eg. insufficient information or management’s assessment is for an insufficient period).

Prepared by: Date:

Reviewed by: Date:

* Delete as appropriate.

Tailored by : SQ
Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

WRITTEN REPRESENTATIONS CHECKLIST A51

Objective: To obtain appropriate written representations from management (and separately, where different, those charged
with governance) and to respond to such representations or lack thereof.

ISA+ Comment
Obtain written representations (in the form of a letter addressed to the auditor) that: 580
115. They have provided the auditor with all relevant information and access as set 580
out in the terms of engagement and all transactions have been recorded and are
reflected in the financial statements.*
116. Acknowledge responsibility for the preparation of the financial statements as set 580
out in the terms of engagement.*
117. Specific acknowledgement regarding any restatement made to prior period 710
financial statements that affects the comparative information.
118. Acknowledge responsibility for the design and implementation of internal 240
control to prevent and detect fraud.
119. Approve all decisions on issues requiring the exercise of judgment in relation to ES5
the provision of non-audit services (including year end adjustments and
disclosures in the financial statements). 1
120. Explain their reasons for not correcting misstatements brought to their attention
by the auditor.2
121. They believe the effect of uncorrected misstatements (as aggregated by the 450
auditor) is immaterial both individually and in total. (A summary of such items
should be included in or attached to the written representations.)
122. They have disclosed to the auditor: 240
 the results of their fraud risk assessment;
 their knowledge of fraud or suspected fraud;
 any allegations of fraud or suspected fraud which affect the financial
statements.

123. They have disclosed to the auditor all known actual or possible non-compliance 250A
with laws and regulations, including any litigation and claims (and the 501
consequences arising) whose effects should be considered when preparing the
financial statements.
124. They believe significant assumptions where used in making accounting estimates 540
are reasonable.
125. They have provided all information regarding the identification of related parties 550
and that related party disclosures in the financial statements are adequate.
126. They have adjusted or disclosed as appropriate all events occurring subsequent 560
to the date of the financial statements.
127. If events or conditions have been identified which may cast significant doubt on 570
the entity’s ability to continue as a going concern, explain the management’s
plans for future actions.
128. Additional matters to support other evidence relevant to the financial 580
statements or one or more specific assertions in the financial statements.

Conclusions The date of representations shall be as near as practicable to, but not
Appropriate written management representations have been after, the date of the audit report. Further assurance (including
obtained. The letter is filed on ______ . possible further written representations) has been obtained for the
period between the two dates.
Prepared by & date:

Reviewed by & date: Updated by & date:

Tailored by : SQ
Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

Tailored by : SQ
Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

COMMUNICATION WITH MANAGEMENT CHECKLIST A52-1

Objective: To communicate relevant matters to management.

ISA+ / ES Sch ref Comment

The following should be reported to management:

129. On the basis of the work done (see in particular A27 and B33), have we 265 Yes
identified deficiencies in internal control?
130. Where the answer above is “yes”, do these amount to significant 265 Insignificant deficiencies.
deficiencies? (Significant deficiencies shall be communicated in Details communicated to
writing. Other deficiencies need only be communicated to the client.
management and orally if appropriate.)
131. Other matters of governance interest arising from the audit. For
example:
 Views on significant qualitative matters (eg. whether accounting 260 Agreed
policies and estimates used are appropriate)
 Significant difficulties encountered during the audit 260 None
 Other matters significant to the oversight of the financial 260 None
reporting process
 Misstatements (with the appropriate level of management) 450 All material
misstatements corrected
 Uncorrected misstatements (except those that are considered 450 Ref A25
clearly trivial) and the management’s reasons for not correcting
them
 Uncorrected misstatements related to prior periods 450, 510 None
 Expected modifications (including emphasis of matter or other 705 / 706 None
paragraphs) to the audit report (including circumstances and
proposed wording)
 Facts and matters that bear upon the auditors’ objectivity and ES1 Cleared.
independence.

132. Where an actual or potential fraud has been identified, details of these 240 None observed
findings. Also, other matters in relation to fraud.
133. Where the auditor suspects there may be non-compliance with key 250A Ref : A25
laws and regulations, details of these findings.
134. If applicable, whether a Service Organisation has reported, or 402 None observed
management are otherwise aware of any fraud, non-compliance with
laws and regulations or uncorrected misstatements.
135. Where the auditor identifies a material misstatement of fact in the 720A None
“other information” connected with the financial statements, details of
this should be discussed.

NB. Communication with those charged with governance, where different from management, should be recorded on A52-2.

Conclusion: Appropriate communications have been made and recorded. The written communication is filed on ______ .
Notes of oral communications (including when and with whom) are filed on _____ .*

Prepared by: Date:

Reviewed by: Date:

* NB. Form of communication. ISA+ 260 requires significant findings to be in writing where, in the auditor’s judgment, oral
communication would not be adequate. For periods ending before 15 December 2010, communication must be in writing (including,
where there are no matters above, a written report should be issued explaining that there are no matters that the auditor
wishes to draw to their attention).

Tailored by : SQ
Client Name : Fortune Executive Tower OA Accounting Period : 31 December 2012

COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE CHECKLIST A52-2

Objective: To communicate relevant matters to those charged with governance.

NB. Unless those charged with governance are different from management, this schedule need not be completed.
If communicating with a sub-group (eg. audit committee), determine whether communication is also needed with the governing body.

ISA+ / ES Sch ref Comment

All relevant matters from A52-1 need to be communicated with those

charged with governance: Done
 Significant deficiencies in internal control;
 Other matters of governance interest from the audit;
 Details of any actual or potential fraud;
 Non-compliance with key laws and regulations;
 Material misstatement of fact in the “other information”
(including adjustments management refuse to correct).

In addition to the matters on A52-1, the following should be reported to

those charged with governance:
136. Other matters of governance interest arising from the audit: None
 Significant matters from the audit discussed, or the subject of 260
correspondence, with management
 written representations requested of management 260

137. Fraud involving management (discuss revised audit approach), 240 None
employees or others where the fraud involves a material misstatement
in the financial statements.
138. Where the auditor concludes management’s refusal for the auditor to 505 None
seek an external confirmation is unreasonable or alternative evidence
is not available.
139. Significant matters arising during the audit in connection with the 550 Done
entity’s related parties.
140. Events or conditions (including a significant delay in the approval of 570 None observed.
the financial statements) that cast doubt on the entity’s ability to
continue as a going concern (including whether there is a material
uncertainty, the appropriateness of the accounting treatment and
disclosure).

Conclusion: Appropriate communications have been made and recorded. The written communication is filed on ______ .
Notes of oral communications (including when and with whom) are filed on _____ .*

Prepared by: Date:

Reviewed by: Date:

* NB. Form of communication. ISA+ 260 requires significant findings to be in writing where, in the auditor’s judgment, oral
communication would not be adequate. For periods ending before 15 December 2010, communication must be in writing (including,
where there are no matters above, a written report should be issued explaining that there are no matters that the auditor wishes to
draw to their attention).

Tailored by : SQ