ACC 521 Lecture Notes - Audit Risk, Bank Reconciliation, Accounts Payable
2 Oct 2014
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Review the prior year"s audit files for any contingent liabilities identified in the prior audit. Examine the client"s legal correspondence files for any undisclosed lawsuits and information. Review amounts recorded as legal expenses to find any undisclosed lawsuits and information. Review the minutes of meetings of shareholders and directors. Review contracts, agreements, leases, and related correspondence for evidence of claims. Review the status of tax assessments from cra for unpaid taxes. Confirm with manufacturing bank of canada the existence of and conditions attaching to long-term debt (source: cga-canada au1 examination september 2010) Report on the action of the new share issue in a note to the balance sheet. Consider presenting a pro forma shareholders" equity section of the balance sheet. Report the fire loss in a note to the balance sheet and refer to it in connection with the income statement, since earning power is presumably affected.
