Chapter 12 - Completion and review. In this chapter we will discuss: understand the nature and significance of the auditor’s reporting obligations; understand the structure and qualitative characteristics of the auditor’s report; explain the differences between the concepts of ‘true and fair’ and ‘presents fairly in accordance with’, and between a fair presentation framework and a compliance framework. | Part Four Completion and Communication 12- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia 4e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Chapter 12 Completion and review 12- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia 4e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett The nature of completion and review procedures 12- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia 4e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Learning objective 1: Date of the audit report Important because it establishes the date of the auditor’s responsibility for knowledge of events that should be reflected in the financial report. Audit report should be dated when it is actually signed, and no earlier than date of directors’ declaration. Ensures financial report was completed and formally accepted by officers of the company prior to the auditor expressing an opinion. 12- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia 4e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Audit procedures after balance date Many audit procedures performed after balance date as normal tests of balances, for example: Cut-off tests Collectability of accounts receivable determined by subsequent payment Search for unrecorded liabilities. 12- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia 4e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Analytical procedures at or near completion ASA/ISA requires the auditor to apply analytical procedures at or near completion of the audit to: Assist in overall review of reasonableness of financial report Corroborate conclusions formed during audit Ensure financial report is consistent with . | Part Four Completion and Communication 12- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia 4e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Chapter 12 Completion and review 12- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia 4e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett The nature of completion and review procedures 12- Copyright 2010 McGraw-Hill Australia Pty Ltd PPTs t/a Auditing and Assurance Services in Australia 4e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Learning objective 1: Date of the audit report Important because it establishes the date of the auditor’s responsibility for knowledge of events that should be reflected in the financial report. Audit report should be dated when it is actually signed, and no earlier than date of directors’ declaration. Ensures financial report was completed .
