Chapter _17, Completing the Audit

Chapter _17, Completing the Audit - Can You See the Light...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Can You See “the Light at the End of the Tunnel”? “Completing the Audit Engagement” – still gathering audit evidence… Review for contingencies (in general) Inquiry regarding legal matters (specifically) Review for “subsequent events” Obtain “management representations letter”
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Review for Contingencies (Especially Contingent Losses) Definition – “an existing condition, situation or circumstance involving uncertainty as to possible gain or loss… that will ultimately be resolved when one or more future events occur or fail to occur.” Why focus on contingent losses, rather than gains? GAAP is still specified by SFAS #5 (accruals, disclosure) Audit procedures Inquiries of management and other client personnel (regarding lawsuits, legal exposure, etc.) – Corroborate w/ “lawyer’s letter” Read minutes of board meetings Review contracts, loan agreements, etc. (Restrictive covenants?)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/22/2011 for the course ACCY 360 taught by Professor T during the Spring '08 term at Northern Illinois University.

Page1 / 9

Chapter _17, Completing the Audit - Can You See the Light...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online