RSM323H1 Lecture Notes - Lecture 12: Audit Evidence, Office Supplies, Information System
Document Summary
Assume at this point, you have finished all the major accounts completing the audit. Subsequent events: events happen after year end but before auditor issues audit opinion, 2 important activities. Conditions already exist before year end, final result happened after year end. Review: make sure all evidence are appropriate and sufficient, review of planning, evidence gathering, opinion well supported, major issues, review of the independence of the audit team, obtain approval from the committee, issue report. As an auditor, what procedures to be follow: contact manager and committee immediately about new information, inform users about the misstatement and what is the correct amount, or issue new f/s. If the company does not issue new f/s, then inform manager or committee that you will withdraw or change opinion. Immediate action to reduce damage to auditor"s reputation can eliminate your liability completely. When you saw the misstatement, must disclose it.
