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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
have been accounted for action if they become aware
appropriately of events which 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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