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Unformatted text preview: engagements, actually
conducting the planned audit tests comprises most of the time spent on a ﬁnancial statement audit or an audit of internal control over ﬁnancial reporting. For
public company clients, the audit of internal control is done in an integrated
way with the ﬁnancial statement audit. This topic is addressed in Chapter 7 and
throughout the book where appropriate.
Complete the Audit After the auditor has ﬁnished gathering evidence relating
to ﬁnancial statement assertions, the sufﬁciency of the evidence gathered is evaluated. The auditor must obtain sufﬁcient appropriate evidence in order to reach
and justify a conclusion on the fairness of the ﬁnancial statements. In this phase,
the auditor also assesses the possibility of contingent liabilities, such as lawsuits,
and searches for any events subsequent to the balance sheet date that may impact
the ﬁnancial statements. Chapter 17 covers each of these issues in detail. Practice
INSIGHT mes25435_ch01_001-032.indd 21 The audit of internal control over ﬁnancial repor...
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This note was uploaded on 12/08/2012 for the course ACCT 564 at Washington University in St. Louis.