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DATE

SA 54o PAGE

AUDITOR AND (HE CoING CONEPN AssUMPTTON.


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GfnConten bagis Accaunting
AS-4
A - 1 FS prepaxcd on assumtio nat
Enhhy IS
qoi Concevn and Conhnu its
oberodhon
fox tovesecalde utuse

F S axe Ypore ntends ohqidat the enkky


oin Concen
or Cease Operation

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mat, cthx Aterndtve but t do So

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pmriate shen _isharqe abiuhes
nOYma CoYSe Oof BOSIne SS

Obiectie kResponsibilidies oAuclitor


Obtain S AAE To Conclv de, TO Repovt
Conclode on AppO On basis of SAAE aS per
-iaBeness mats LOhethex materias Hhis
SA
Use of G.c bass nce cendtion
Uncestanity exst
Retatrat dcadition
in Pf o Fs
that may doubt oue
eniys abity to
Conh nue as Gc

Nde SA 200, Tnberent Limrtacton en


o n Auelitor's Abr tty Auditoy Cant guAYanbe
dekct att ukww enhtys abitty as G
Megic-
DATE

PAGE

Risk AccessEMENT kocEDUREG AND KeLATED ACTINIEC

RAP tAsk MGT AROUT PRELIMTNARY


(A 3IS ASsessMENT PERFOMED BY TREM

ASSESME N ASSESsMENT OT
PERFORMED | PERFORMED

DISCUSS ASsESSMENT olTH MGT BASIS


DISUS S
PERFO RMED FOR TNDENTED USE

OF GC
tOHETHER evENTS OR
ConsDITIoNS DENTIFIED INQUIRE MGT OHETHER
EvENTS ERISTT
THAT CAST DOUBT oN
ABTLITY To CONTINDE THAT CAST POVRT ON

AS GC ABILITY To CONTI NUE


AS G

evENTS OR CONDITIONS THAT CAST SGNIPIGANT


DOUBT ON ENTITY% ABILITY To CoTINVE AS Gc

=ERAMPLES
ETNAIAL OTHER
-NET LABILTTY OR MGT INTENTION CHANGE TN
NET CURRE NT TO LIQUT DATE LA OR
TIABTLITY POSITION" GoVT PoLTCy
- T H DRAWAL OF CEASE OPERATIONS
FNANCI AL SO PPORT BY PENDNG
oSs oF KET MGT
CREOTTORS KSITHOVT RE PLACEMENTLEGAL PROCEE-
-NE CASH FLOWS LABOUR DIPFICULTIES PING
ADVERSE FINANCTAL
RATT0
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DATE

'AG

-Fixep TERM BOSROLING-Loss of MAJDR MKT, NONJ


kEY CUSToMER, COMPIANCE
ApPROACHING MATURITY T H CAPITAL
I THOUT REPAY ME NT FRANCHICE, LICENSE
OR CTHER-
OR PRNCIPLE SUPPLTCR
REQ
SHORT TERM BoRRoWTNG SHORTAGE OF
TO FINANCE LoNG TERM MPDRTANT SUPPLIE-ONI NSURED

ASSETSS CATASTKOPHES
-EMERGENCE OF OHEN THEY.
SVCLEsSFOL OCUOR
HIGHL
COM PETITOR

ADDJTLONLAUDIT PROCEOURE HEN EVENTS OR


CeNDIILONÍS ARE IDENTIPTED

IF EVENTS HAYE BEEN IDENTLATEED


THAT CAST DovRT OUER GC

AUDITOß O8TA1N EV/DENCE SAtE)


C
OHETHER ÜNKERTAINTY EX)ST AND AKOMITISATING
FACTOKS.
PROCEDURE

MGT YET NDT MGT KEFAKED


PERFORMED CoSIDEK REQUEST
CASH FLO
A SSESSMENT PoRCAST ADDT TIONAL
INFo
KEQveST MGT A NALYS LS
To MARe IT 6F FoRcAST To BECOME
CoNSID ER FUTURE AVATLA8LE
OUTo MES
EUALUATE PLAN
FOR FUTURE ACTTON AD AND EVALUT E
AND HO IT IMPRNE
S ITUTTON BAS TS ADEQUATE
F o R FoRCAST SUPPORT

ASSUMPTIONNS
G

VIT_PKoceDURT RELCVANJ To H(K QUIREME T


AS STAIED AGeNC MAY INCLUDE

ANALY2iNG_AND DISCUSSINGCASHFLOL PROFIT +


OTHERFACTORs
ANALY2ING AND DISCuSSInN4 LOTH MGT INERIM FS
READ TERMS OF SEBENTUKES AND LOAN
AGREEMENIS
ANS DETER MNE AOHET HER ANy HAVE 2eEN K KEACHE DD
READ MeeTINGMINTUts. FOR REFERENLE OF
FINAN CAL DFFICULTIES -
INQUIRE LEGAL CovNSELKEGARDI NG ANy LITI GATON
oR CLAT MC
CoNFIRM THE ExISTEJCE DF LEGALITY AND
ENFORCEABILN oF ARRANGEMENT. To PRoNIDE FiNANIAL
SOPPORT
-EVALUATE ENTITYS PLAN To DEAL ITH
UNFTLED CUToMER 6AERS- ORDERS
PRoCEDDRES REGARDNG SUBSEQUGNT EVENTS
CoNFIRM EXIS TENNCETERM AwD ADE QUACY OF
BORKOING PACTLTL TLES
-0BTAMN AAJD RE VIELO REfoRTS OF
ACTLON
REGULATORY
- ADEQLATE SOPPORT FoR ANY PLANNED
DSPoSALS DE ASSETS
TIMRLTeATD foRAupI REPORT
BAS(S
OsE PF GoING CoNdEN BATS OsE CF GOINGCoERN APPURIATE
FoR Ac opNSING TIS ot AcdouN TING |T
INAPPROPRTATE| A MATERIAL UNdERTAINTY
PT ex ST

I FS ARG PP MT MAY ELE


ASPER Gc ASTS To Pl Pis bN |TDeNTIFY MATE RIAL UNEKTAIN
TY
LI QUIDATION
sE SEPARATE SECTTON
AYDEOR SHALd BAS PRoNIDE ITS REPERENCE
EPREs AN
AsDNERG¢ ADIToR uotL To ALERT OSERS

OPlNIDN PERFRM PÅT


AuOTT AD
ADEguATE A DEQUATE
d PREss DIsciosURE TN DisCLosURENDT
OtMdoTFIED FsExST ) MADE N PIS
oPINON ENPRESs UALTF(ED
E PERSs uNMDAj OPINI ON OR
BuT MAN CoNSIDEN OPTNIdON ADN ER sE PN ON
TT NE de dSAR
AND AR TNCLUDE
ICLUDE ALSo STTA TE
EM PARA SepARATE seCTON
SA C UDDEK| HEEA DING SASTS Fak
PNION
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DATE

SA: ScLAuDIT EVIDENCE PAGHE

SPECTFIC CONSDERATION FOR sELECTED ITEMSs


EISTENCE AND CONDITTON F
OBJECTINE F INVENT6RY
AUDTTOR TO CoMPLETENESS OF LITIGATLON CATMS
OBTALN SAAE PRESENTAT ION AND DSCLOSORE OF
SE GEMENT TNFORMATION. IN ACC
TH FRF. EA

OHEN INVENTORY S MATERLAL


To FS, 08TAIN SAAE REGARDT NG

EXISTENCE AND CON DITLON

or NvETORY BY
ATTENDANCE AT PEREORM
HSICAL INVENTORY AUDIT PROE
bURE
CoUNT ING , OMLESS TMPRACTICABLE
OUER ENITY
- E VALUTE MGT INSTRUCTlON FINAL INVeNT
AND PROCEDURES FoR CONTROLLiM OR
RECORD TOD
- OBsERNE PERFORMANE OF DETERM NE.
WHE THER THey
CoUNTPROCEDURE
INSPECT CoUNT AcCURATELY
PERFORM TEST CoONT RE FLECT ACTOAL
INVE NTOR
COONT.
ATTENDANCE AT PHYSICAL MATTER RELEVANT LN
INVENToRY CoUNTING FLA NNTNG ATTENDANCE
- INPECT COUNT To ASCERTANATOKE OF ENNENTOR
KMM REL TED To INNENTR
TTS ExISTENCE AN -NATURE OF TC
-
OBSERVE COMPLT ANCE ATH ADEQUATE PRoCeNURE FFD
MGT INSTRUCTLON INSTRUCTIONFORK COUNT.
TIMING OF COONT
CBTAIN SAAE PORK -
LOHETHER ENTI TÝ MAINTHN
RELIABILITY OF COUNT PERPETvAL TNvEN TORY SSTEM
|-LOCATTON OF INNENTORy
- -ASSISTA0CE OC EnERT
CuONT ConDcED DDER CO sfaDY
UNABLE To ATENDAN
ONDATE QTHeR AnD CoNTRL
THASF ATTEND PHYSICAL MRAC TCLEF
O NT | C3pAATY
peRFORM A P. AuTOR PERFoRM MATERIAL I S FS
MAKE DR| BsERE ALTERNAT|INE AUDIT
To DBTA SAAE CobNT O PROCEURES OBTAIN SAAE
ALTeRNAtTYE REGARDINÅ
ABoU CHANGES DATE ExiSTenE AD
IN INNENN TOR To OBTAIN SAAE
REGARDNG EISTE XE CONLTLON
B-CooNITATE PERFORM AP N AroDCODITIOns
DATE o INTeRveNIN O ENToRY
TRANACTLONS 0BTAINING PERPORM
CanFRMATIO sPECTIN
TF oTPossIBLE FROM 3Y4 TF

AuDETOR MDIF PAKTY PossrBLE


OPIIO nT AR
AHOs)
Mue
DATE

PAGL

-LITIGATION AND (LAIMS,


IF RMM AssESSED
-lRFORM AP CoMMUNI CATE LOITH
ToIDENTIEY LITSATION
AND CLAIS ENTITY'Ss TERAL
LEGAL CoUNSEL
THAT GIVES RISE To
RMM

INLUDING. IF LA0, REGULAT LONI


oR RESPCTINE LE GAL
-INQuIRY OF MGI AND
IN-HdUSE LEGAL CoU NSEL PROFESSIONAL BoDY
RENIE MINUTES PROHI BITS
RENIE LEGAL COUNSEL
ExPENSE ACCoUNT . PERFORY ALTERNATIVE
A P
A
BUT EAUDI TOR JUDSEIr
WDITR SHALL NECCESS AR To CoMM UNI CATE
MODIF PINI O
LN AR CHos THIS MAY BE CASESS HeRE
-MATTER OP SISNIFCANT RISK
MATTER IS CoMPLEX
DISAGReEMENTT 8/ GT ARJD
x TEROAL LEGAL CoONSEL.

SEGMENT REPORTI NG.


TO CBTAIN SAAE

REGARDING PIP o
UNDERS TANDING oE
SEGMENT INFO METHODS BY DSE D
AS PER FRF BY. B MGT By
SALES TE AND CHDKGES
Bl SELMENTS 4 ELIMINATE
TaOBTATN ONDERSTANDING . OF INTERSEGnEN T
ofMETH ODS USED
AMT
M
DAT

PAGE

EVALUATE SUCH (h CoMPARISONOTH


ME THODs PRoNIDE BUDGETS AJ OTHER
PROPER
DISCLOSURE AS Pe R FRF RESULTS
ALLOCATLoN CF
TEST APPLICATION
OF SU CH
-
METHODS ASSETS AND CosT
)CoNSIS TENe OTH-
PeRFoRM ANALYTICAL PRICR PERIODS
PROCEURES

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