ch16 outline - Outlines Chapter 16-1 Chapter 16 Completing...

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Outlines Chapter 16- 1 Chapter 16 Completing the Audit Contents: 1. Procedures 2. Evaluate audit findings 3. Engagement Completion Document 4. Communicate with audit committee 5. Post Audit Responsibilities 1. Procedures a. Search for unrecorded liabilities—particularly review cash disbursements after year-end. b. Review Minutes of meetings—e.g., stockholders, directors, audit committee. c. Perform analytical procedures (remember—required) d. Perform procedures to identify loss contingencies The lawyer’s letter is important: Client prepares letter with claims, litigation, assessments and unasserted claims. o Unasserted claims probable of assertion, and if asserted, reasonably possible will lose. Attorney replies, describing claims, litigation and assessments, and if possible, giving likelihood of losing. e. Perform review for subsequent events Subsequent Event types Type 1—Condition in effect before year-end. Make adjusting entry. Type 2—Condition in effect after year-end. Add a note disclosure to the financial statements if it is important enough. Procedures to find subsequent events (through last day of field work) o Determine proper cutoffs of purchase, sales, cash receipts cash disbursements by examining journals shortly before and after year- end.
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Outlines Chapter 16- 2 o Review the latest available interim financial statements and minutes of directors, stockholders, and appropriate committee meetings. o
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This note was uploaded on 09/08/2010 for the course BUS 129A at San Jose State.

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ch16 outline - Outlines Chapter 16-1 Chapter 16 Completing...

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