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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