QS Study

Completing the Audit

In post balance sheet events considerations must be given in to completing the audit. The conclusion period of the audit is of vital substance. It is during the conclusion period that the auditor reviews the confirmation obtained during the audit jointly with the final version of the financial statements with the objective of forming the auditor’s opinion. The procedures performed in this activity have the following reveal distinctive characteristics:

(a) they do not pertain to specific transaction cycles or accounts,

(b) they are performed after the balance sheet date,

(c) they involve many subjective judgments by auditor and

(d) they are usually performed by the audit managers or other senior members of the audit who have extensive audit experience with the client.

In completing the post balance sheet events, the auditor seeks the earliest frequently work under tight time constraints, particularly as clients seek the earliest possible date for the issuance of the audit report. Auditors also have certain post-audit responsibilities. When auditors find, subsequent to the issuance of their audit report, that the financial statements are materially misleading, they should take steps to prevent continued reliance on their report. In some cases, this might involve notification of regulatory agencies.

Related Study: