Review

Subsequent Events
Review of Financial
Statements
Going Concern

Written
Representation

Overall Review of
Financial Statements

Subsequent Events Review

Types of
Events

Adjusting Non-Adjusting
Events Events

Material but
Affect Going
do not affect
Concern
Going Concern
Auditors’ Responsibilities Regarding Subsequent Events

Audit
F/S
Year End Report AGM
Approved
Signed

Procedures to Identify

1. Enquire:

2. Minutes of Board meetings

3. Written Representation

4. Inspection of post year end F/S

5. Normal post year end work

Facts discovered after the financial statements have been issued.

(a) Discuss the matter with management and, where appropriate, those charged with governance;
(b) Amendment needed; and, if so,
(c) Inquire how management intends to address the matter in the financial statements.
If management amends the financial statements, the auditor shall:
(a) Carry out the audit procedures necessary in the circumstances on the amendment.
(b) Consider if audit report needs to be revised and issued.
Going Concern

Impact of
GC on F/S

Uncertainty Company is
re GC NOT a GC

Responsibilities Regarding GC

Responsibilities

Management Auditor

Assesses if
Management
Assumption is correct

Checks adequacy of
disclosure
Written Representations/Management Representation Letter

Purpose of Written Representation

Refusal to Sign Written Representation

Overall Review of Financial Statements

1. Checklists

2. Accounting policies and disclosures

3. Final analytical review

4. Consider sufficiency of audit evidence

5. Consider adequacy of audit procedures

6. Discuss uncorrected misstatements