Page 159 - AAA Integrated Workbook STUDENT S18-J19
P. 159

Completion and review




               1.2 Auditor responsibilities


                                                     Auditor’s                        Financial
                   Year-end                             report                       statements
                      date
                                                       signed                           issued










                                 Active duty                                Passive duty

                            Perform procedures to                     No obligation to perform
                         ensure subsequent events                procedures but must take action if
                          have been accounted for               they become aware of events which
                                 appropriately                     would cause a modified report



               Between the date of the financial statements and the date of the auditor’s
               report

                    The auditor must perform audit procedures to ensure the client has complied
                     with the correct accounting treatment.

                    If material adjusting events are not adjusted for, or material non-adjusting
                     events are not disclosed, the auditor will ask management to make the
                     necessary amendments to the financial statements.

                    A written representation from management should be obtained stating that all
                     events requiring adjustment or disclosure have been adjusted or disclosed.


                    If management refuse to amend the financial statements and the matter is
                     material, the auditor's report should be modified with either a qualified or
                     adverse opinion depending on whether the matter is material or material and
                     pervasive.




















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