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Internal Quality Review Process Reynante S.

Ventura, CPA

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INTERNAL QUALITY REVIE

PR!CESS

". T#e Internal Quality Review Process is t#e se$uence o% &i%%erence activities involve& in t#e 'ractice o% accountancy. (or e)a*'le, t#e au&itor *ay 'lace +reater e*'#asis on t#e t#ou+#t%ul un&erstan&in+ o% t#e ,usiness an& internal control environ*ent an& t#orou+# &evelo'*ent o% a &etaile& au&it 'lan 'rior to carryin+ out t#e %iel&wor-. In ot#er instances, t#e au&itor *ay 'lace less e*'#asis on t#e review an& 'reli*inary evaluation o% accountin+ syste* an& internal control. .E *ay, t#en acco*'lis# t#e au&it o,/ectives t#rou+# t#e 'er%or*ance o% su,stantive 'roce&ures 0. T#e ter* 1au&itor2 as use& in t#is *anual re%ers to 1t#e au&itor an& #is %ir*2 an& 1t#e en+a+e*ent tea*2. T#e ter* 1en+a+e*ent tea*2 i*'lies t#at t#ere is in&ivi&ual w#o is res'onsi,le %or *a-in+ wor- assi+n*ents an& %or assu*in+ ulti*ate res'onsi,ility %or t#e au&it. 3a/or Au&it !,/ectives 4. T#e *a/or au&it activities are cate+ori5e& as %ollows6 A. Pre7En+a+e*ent an& Plannin+ 8. Stu&y an& Evaluation o% Accountin+ Syste* an& Control Environ*ent C. Co*'liance or (unctional Proce&ures 9. Su,stantive Test Proce&ures E. Au&it Conclusions an& Re'ortin+ PRE7EN:A:E3ENT Pro%essional Quali%ications an& Et#ical Re$uire*ents ;. T#e in&e'en&ent au&itor s#oul& 'ossess 'ro%iciency in accountin+ 'ractice an& au&itin+ 'roce&ures ac$uire& t#rou+# a co*,ination o% +eneral e&ucation, tec#nical -nowle&+e o,taine& t#rou+# stu&y an& %or*al courses conclu&e& ,y $uali%yin+ e)a*ination, an& 'ractical e)'erience un&er 'ro'er su'ervision. In a&&ition, t#e au&itor *ust ,e aware o% &evelo'*ents inclu&in+ relevant international an& national 'ronounce*ents on accountin+ an& au&itin+ *atters, an& relevant re+ulations an& statutory re$uire*ents. <. #en au&itin+ in an E9P environ*ent, t#e au&itor s#oul& #ave +eneral un&erstan&in+ o% co*'uter #ar&ware, so%tware an& 'rocessin+ syste* su%%icient to 'lan t#e en+a+e*ent an& to un&erstan& #ow E9P a%%ects t#e stu&y an& evaluation o% internal control an& t#e a''lication o% au&itin+ 'roce&ures, inclu&in+ co*'uter assiste& au&it tec#ni$ues. =. In ot#er instances, t#e au&itor *ay also re$uire t#e services o% in&ustry s'ecialists an& tec#nical e)'erts. I% t#e au&itor &eci&es to use t#e wor- o% ot#ers, coor&ination wit# t#e* s#oul& ,e *a&e at an early sta+e o% t#e en+a+e*ent. >. In all *atters relatin+ to an au&it, t#e au&itor s#oul& *aintain in&e'en&ence in *ental attitu&e an& t#e con%i&entiality o% all in%or*ation o,taine& in t#e course o% 'ro%essional en+a+e*ent.

Internal Quality Review Process Reynante S. Ventura, CPA

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T#e au&itor s#oul& e)ercise reasona,le care an& &ili+ence in carryin+ out #is 'ro%essional wor-. .e s#oul& only acce't an en+a+e*ent, w#ic# #e can e)'ect to co*'lete wit# 'ro%essional care an& co*'etence.

Per%or* new client investi+ation@Consi&er c#an+e in circu*stances o% e)istin+ client A. T#e %irst ste' in t#e au&it 'rocess is to &eter*ine t#e acce'ta,ility o% a new client an& to consi&er c#an+es in circu*stances, w#ic# *ay #ave an i*'act on t#e retention o% e)istin+ clients. So*e o% t#e *atters t#e au&itor s#oul& ta-e in to consi&eration are t#e ,usiness re'utation o% t#e clients co**unication wit# t#e 're&ecessor or incu*,ent au&itors an& any si+ni%icant c#an+e in t#e owners#i' or *ana+e*ent o% t#e entity. T#e au&itor s#oul& #ave esta,lis#e& 'olicies an& 'roce&ures as ,ases %or &ecision on t#e acce'tance o% new client or retention o% e)istin+ ones. T#is is in or&er to *ini*i5e t#e li-eli#oo& o% ,ein+ associate& wit# a client t#at coul& cause &iscre&it to t#e au&itor an& #is %ir*. Esta,lis# Ter*s o% En+a+e*ent "B.!nce a new client is acce'te&, t#e ter*s o% t#e en+a+e*ent s#oul& ,e esta,lis#e&. T#e au&itor s#oul& 're'are an en+a+e*ent letter to &ocu*ent an& con%ir* #is acce'tance to t#e a''oint*ent, t#e o,/ective an& sco'e o% t#e au&it, t#e e)tent o% res'onsi,ilities to t#e client an& t#e %or* o% any re'orts 'ro'ose& to ,e issue&. T#e en+a+e*ent letter is a use%ul *eans o% co**unication an& #el's to avoi& *isun&erstan&in+ as to t#e s'eci%ic ter*s o% en+a+e*ent. A co'y o% t#e en+a+e*ent letter si+ne& ,y t#e client is t#e au&itorCs evi&ence o% t#e clientCs a+ree*ent t t#e ter*s o% en+a+e*ent. !n recurrin+ au&its, t#e au&itor *ay &eci&e to sen& a new en+a+e*ent letter eac# year. I% not, #e *ay wis# to re*in& t#e coo'erative o% t#e assi+ne& letter. PLANNIN: Un&erstan& t#e ClientCs 8usiness "".T#e au&itor s#oul& 'ossess a level o% -nowle&+e o% t#e client ,usiness an& in&ustry t#at will ena,le #i* to i&enti%y t#e events, transactions an& 'ractices, w#ic# in #is /u&+*ent *ay #ave a si+ni%icant e%%ect on t#e %inancial state*ents. T#e au&itor can o,tain suc# -nowle&+e t#rou+# in$uiry ins'ection o% &ocu*ents, o,servation an& use o% re%erence *aterials an& e)'erts suc# as t#e re+ulatory ,o&ies li-e C9A, 8IR an& SEC, as well as %ro* wit#in t#e entity. "0.T#e au&itor *ust o,tain su%%icient -nowle&+e o% t#e clientCs ,usiness in or&er to &evelo' t#e overall au&it 'lan, i&enti%y areas %or s'ecial au&it consi&eration, evaluate t#e reasona,leness o% accountin+ esti*ates an& *ana+e*ent re'resentation an& *a-e /u&+*ent re+ar&in+ t#e a''ro'riateness o% accountin+ 'olicies an& &isclosures. Un&erstan& t#e Accountin+ syste* "4.T#e au&itor s#oul& #ave an u'&ate& -nowle&+e an& &ocu*entation o% si+ni%icant accountin+ syste*s. .e s#oul& review t#e e%%ectiveness o% t#e syste*, c#an+es

Internal Quality Review Process Reynante S. Ventura, CPA

in control 'roce&ures, an& any si+ni%icant or *a/or revisions to t#e accountin+ syste*. Suc# review s#oul& ,e carrie& out ,e%ore co*'letin+ t#e au&it 'lan. ";.T#e au&itor s#oul& also ,e a,le to i&enti%y si+ni%icant au&it areas w#ic# are *aterial to t#e e)'ression o% an o'inion on t#e overall %inancial state*ents. Esta,lis# En+a+e*ent Tea* "<.A%ter o,tainin+ a su%%icient level o% -nowle&+e o% t#e clientCs ,usiness, t#e au&itor s#oul& *a-e sta%% assi+n*ents an& un&erta-e t#e 'reli*inary &eter*ination o% t#e ti*in+ o% %iel&wor-. Pro%essionals assi+ne& to t#e en+a+e*ent s#oul& #ave t#e &e+ree o% tec#nical trainin+ an& 'ro%iciency re$uire& in t#e 'articular circu*stances. Sta%% assi+n*ents an& t#e ti*in+ o% %iel&wor- *ust ,e *onitore& as t#e en+a+e*ent 'ro+resses to &eter*ine c#an+es in events an& circu*stances. Consi&er 3ateriality an& Au&it Ris"=.In %or*in+ an o'inion on t#e %inancial state*ents, t#e au&itor carries out 'roce&ures &esi+ne& to o,tain reasona,le assurance t#at t#e %inancial state*ents are 'ro'erly state& in all *aterial res'ects. In 'lannin+ an e)a*ination, t#e au&itor s#oul& consi&er areas t#at re$uire s'ecial attention, %inancial state*ent ite*s li-ely to contain *aterial errors, con&itions li-ely to re$uire e)tension or *o&i%ication o% au&it tests an& 'reli*inary /u&+*ents a,out *ateriality an& au&it ris- %or au&it 'ur'oses. ">.T#e au&itor s#oul& reco+ni5e t#at 'reli*inary /u&+*ents a,out *ateriality an& au&it ris- *ay c#an+e as new in%or*ation &evelo's &urin+ t#e au&it. Consi&er or- to ,e Per%or*e& ,y !t#ers

"?.9urin+ t#e 'lannin+ '#ase o% an au&it, t#e au&itor s#oul& &eter*ine t#e e)tent to w#ic# t#ere is a 'lanne& reliance on t#e wor- 'er%or*e& ,y ot#ers, suc# as t#e au&itors, internal au&itors or s'ecialists. #en usin+ t#e wor- 'er%or*e& ,y ot#ers, t#e au&itor s#oul& consi&er t#e ter*s o% t#e relations#i', &ivision o% res'onsi,ility, s-ills an& co*'etence o% t#ose 'er%or*in+ suc# wor-, an& 'roce&ures necessary to assess t#e $uality an& su%%iciency o% wor- 'er%or*e&. "A. #en relyin+ on t#e wor- 'er%or*e& ,y ot#ers, t#e au&itor s#oul& never &ele+ate t#e res'onsi,ility %or %or*in+ i*'ortant au&it conclusions or %or %or*in+ an& e)'ressin+ an o'inion on t#e %inancial state*ents. Accor&in+ly, t#e au&itor s#oul& review t#e wor- 'er%or*e& ,y ot#ers to o,tain reasona,le assurance t#at t#e wor- 'er%or*e& is a&e$uate %or #is 'ur'ose.

9evelo' !verall Au&it Plan 0B.!n t#e ,asis o% t#e in%or*ation o,taine& &urin+ t#e 'lannin+ '#ase, t#e au&itor s#oul& &evelo' an overall au&it 'lan. T#e %ollowin+ *atters s#oul& ,e consi&ere& w#en &evelo'in+ t#e overall au&it 'lan %or t#e e)'ecte& sco'e an& con&uct o% au&it6

Internal Quality Review Process Reynante S. Ventura, CPA

T#e ter*s o% t#e en+a+e*ent an& any statutory res'onsi,ilities. T#e clientCs ,usiness an& in&ustry inclu&in+ t#e structure o% t#e or+ani5ation an& t#e accountin+ syste* use&. T#e au&it ris-s an& 'roce&ures to ,e 'er%or*e& to ac#ieve au&it o,/ectives. T#e nee& to rely on t#e wor- o% ot#ers. T#e au&it tea*, ti*eta,le an& ,u&+ets.

0".T#e overall au&it 'lan 'rovi&es a %ra*ewor- %or *a-in+ /u&+*ents. Nor*ally, w#en results o,taine& are antici'ate&, t#e overall au&it 'lan nee& not ,e c#an+e&. .owever, in cases w#ere t#e au&it yiel&s une)'ecte& results or ,usiness circu*stance c#an+e, t#e overall au&it 'lan #as to ,e revise&. STU9Y AN9 PRELI3INARY EVALUATI!N !( ACC!UNTIN: SYSTE3 AN9 C!NTR!L ENVIR!N3ENT !,tain Un&erstan&in+ o% t#e Accountin+ Syste* an& Control Environ*ent 00.A%ter &evelo'in+ an overall au&it 'lan, t#e au&itor s#oul& review ,ot# t#e overall control environ*ent an& t#e accountin+ syste* to +ain un&erstan&in+ o% t#e %low o% transactions. Suc# a review usually inclu&es a survey o% t#e or+ani5ation, *ana+e*ent, 'ersonnel an& t#e nature o% transaction 'rocesses. In a continuin+ en+a+e*ent, t#e au&itor nee& not review certain *atters a+ain. 3a-e Preli*inary 9eter*ination o% #et#er to Rely !n Internal Controls

04.I% in t#e course o% t#e au&it, t#e au&itor &esires to rely on any internal controls, #e s#oul& i&enti%y an& *a-e a 'reli*inary evaluation o% t#ose controls in w#ic# it *i+#t ,e e%%ective an& e%%icient to rely on. T#e au&itorCs 'reli*inary evaluation inclu&es t#e i&enti%ication o% ,ot# t#e *anual an& co*'uter 'roce&ures, w#ic# #el' to ac#ieve t#e overall o,/ectives o% internal control. 0;.9i%%erent tec#ni$ues are use& to recor& in%or*ation relatin+ to an internal control syste*. Selection o% a 'articular tec#ni$ue is a *atter o% t#e au&itorCs /u&+*ent. Co**on tec#ni$ues, use& alone or in co*,ination are narrative &escri'tion, $uestionnaires an& %low c#arts. T#e e)tent o% t#e au&itorCs recor& o% internal controls varies &e'en&in+ u'on t#e controls on w#ic# #e inten&s to rely. In a continuin+ en+a+e*ent, t#e au&itor *ust u'&ate #is -nowle&+e o% t#e internal controls t#at #e is alrea&y aware o% t#rou+# 'revious wor-. 0<.I% 'reli*inary evaluation ,y t#e au&itor in&icates wea-nesses, w#ic# 'reclu&e reliance on certain internal controls, &ocu*entation or 'er%or*ance o% co*'liance 'roce&ures relate& to suc# controls, t#ese s#oul& not ,e carrie& out or at once ,e &iscontinue&. In ot#er instances, t#e au&itor *ay o't %or *ore e%%icient ways o% o,tainin+ su%%icient a''ro'riate evi&ence t#an ,y *eans o% i&enti%yin+, evaluatin+ an& testin+ internal controls. Un&er et#er circu*stance, t#e au&itor *ay acco*'lis# #is au&it o,/ectives t#rou+# t#e a''lication o% ot#er 'roce&ures. Accor&in+ly, #e s#oul& *o&i%y t#e overall au&it 'lan.

Internal Quality Review Process Reynante S. Ventura, CPA

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9evelo' Au&it Pro+ra* 0=.T#e au&itor s#oul& 're'are a written au&it 'ro+ra* settin+ %ort# t#e necessary 'roce&ures to i*'le*ent t#e overall au&it 'lan. .e s#oul& consi&er all t#e in%or*ation o,taine& &urin+ t#e 'lannin+ '#ase o% t#e au&it 'rocess to+et#er wit# t#e results o% t#e 'reli*inary evaluation o% t#e accountin+ syste* an& relate& control environ*ent. In 'articular instances, t#e au&itor *ay c#oose to rely on certain internal controls in re&ucin+ t#e nature, ti*in+ an& e)tent o% re$uire& au&itin+ 'roce&ures, conclu&in+ t#at suc# reliance constitutes an e%%ective an& e%%icient way to ac#ieve t#e au&it o,/ectives. 0>.T#e au&it 'ro+ra* s#oul& #ave su%%icient &etail to serve as a set o% instructions to t#e *e*,ers o% t#e en+a+e*ent tea* involve& in t#e au&it an& as a *eans o% control on t#e 'ro'er e)ecution o% t#e wor-. T#e 'ro+resses on t#e ,asis o% t#e au&itorCs review o% internal control, t#e 'reli*inary evaluation t#ereo%, an& t#e results o% co*'liance an& su,stantive 'roce&ures. C!3PLIANCE AN9 SU8STANTIVE PR!CE9URES Per%or* Co*'liance Proce&ures 0?.Co*'liance 'roce&ures are tests &esi+ne& to o,tain reasona,le assurance t#at t#ose internal controls on w#ic# au&it reliance is to ,e 'lace& are 'resent an& are e%%ective. T#e au&itor s#oul& con&uct suc# co*'liance tests to +ain evi&ence t#at t#ose controls on w#ic# #e inten&s to rely +enerally are i&enti%ie& an& %unction e%%ectively t#rou+#out t#e 'erio& o% inten&e& reliance. 0A.In o,tainin+ au&it evi&ence %ro* co*'liance 'roce&ures, t#e au&itor is concerne& wit# t#e e)istence, e%%ectiveness, an& continuity o% t#e controls t#rou+#out t#e 'erio& o% inten&e& reliance. 4B.Co*'uter assiste& au&it tec#ni$ues *ay ,e use& in testin+ controls %or +reater e%%ectiveness an& e%%iciency. T#e use o% suc# tec#ni$ues *ayA ,e *ore e%%ective w#en t#e co*'uter ,ase& syste* #as no visi,le evi&ence &ocu*entin+ t#e 'er%or*ance o% t#e controls to ,e relie& on. 4".Co*'liance testin+ 'roce&ures 'rovi&e t#e au&itor assurance t#atD #e %ully un&erstan&s t#e syste* t#e &escri'tions o,taine&, as &ocu*ente& wit# %lowc#arts, narratives an& $uestionnaires, are accurate t#e controls w#ic# are ,ein+ relie& u'on are %unctionin+ as inten&e& at t#e level o% co*'liance assu*e&.

40.:iven t#ese assurances, t#e evaluation o% t#e syste* can ,e co*'lete& an& t#e au&itor can intelli+ently 'rocee& wit# t#e su,stantive 'ortion o% #is e)a*ination.

Internal Quality Review Process Reynante S. Ventura, CPA

Evaluate Internal Controls@Consi&er Results o% Co*'liance Proce&ures 44.8ase& on t#e results o% co*'liance 'roce&ures, t#e au&itor s#oul& evaluate w#et#er internal controls were %unctionin+ 'ro'erly t#rou+#out t#e inten&e& reliance an& w#et#er t#ey can ,e relie& on as 'lanne& in t#e 'reli*inary evaluation an& overall au&it 'lan. 4;.I%, ,ase& on t#e results o% co*'liance 'roce&ures, t#e au&itor conclu&es t#at it is not a''ro'riate to rely on 'articular internal control to t#e &e+ree 'reviously 'lanne& or t#at t#e control was not o'eratin+ as &esi+ne&, t#e au&itor s#oul& ascertain w#et#er t#ere is anot#er e%%icient *eans to satis%y t#e au&it o,/ective. Alternatively, t#e au&itor *ay &iscontinue t#e 'lanne& reliance an& *o&i%y t#e nature, ti*in+ or e)tent o% su,stantive au&it 'roce&ures. Per%or* Su,stantive Proce&ures 4<.Su,stantive 'roce&ures are &esi+ne& to o,tain evi&ence as to t#e co*'leteness, accuracy an& vali&ity o% t#e &ata 'ro&uce& ,y t#e accountin+ syste*. T#ese 'roce&ures inclu&e tests o% &etails o% transaction an& ,alances, an& analytical review 'roce&ures Ee.+. analysis o% si+ni%icant ratios an& tren&s, inclu&in+ t#e resultin+ investi+ation o% unusual %luctuations an& ite*s.F 4=.Test o% &etails o% transactions an& ,alances usually consist o% 'roce&ures t#at *a-e t#e au&itor %ocus eit#er on s'eci%ic ty'es o% transactions Ee.+. a&&itions to 'ro'erty, 'lant, an& e$ui'*entsF or on ,alances co*'risin+ several ty'es o% transactions Ee.+. accounts receiva,leF 4>.Analytical review 'roce&ures inclu&e co*'arison o% %inancial in%or*ation. T#is is &one ,y co*'arin+ t#e %ollowin+D in%or*ation %or a 'rior or 'erio&s, antici'ate& results, suc# as ,u&+ets or %orecasts, an& si*ilar in&ustry in%or*ation, suc# as co*'arison o% t#e entityCs ratio o% sales to accounts receiva,le wit# in&ustry avera+es or wit# ot#er entities o% co*'ara,le si5e in t#e sa*e in&ustry.

Stu&y o% relations#i's a*on+ t#e %ollowin+D ele*ents o% %inancial in%or*ation t#at woul& ,e e)'ecte& to con%or* to a 're&icta,le 'attern ,ase& on t#e entityCs e)'erience, suc# as a stu&y o% +ross *ar+in 'ercenta+es, an& ,etween %inancial in%or*ation an& relevant non7%inancial in%or*ation, suc# as a stu&y o% 'ayroll costs in relation to nu*,er o% e*'loyees.

4?.Various *et#o&s *ay ,e use& in 'er%or*in+ analytical review 'roce&ures ran+in+ %ro* si*'le co*'arisons to co*'le) analyses usin+ a&vance& statistical tec#ni$ues. T#e c#oice o% 'roce&ures, *et#o&s an& level o% a''lication is a *atter o% 'ro%essional /u&+*ent.

Internal Quality Review Process Reynante S. Ventura, CPA

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4A.T#e e%%ectiveness an& e%%iciency o% 'er%or*in+ su,stantive 'roce&ures *ay ,e i*'rove& ,y usin+ co*'uter assiste& au&it tec#ni$ues suc# as t#e use o% au&it so%tware to test all, or a sa*'le, o% t#e transactions in a co*'uter %ile, or to i&enti%y unusual %luctuations or ite*s. ;B.In o,tainin+ au&it evi&ence %ro* su,stantive 'roce&ures, t#e au&itor is concerne& wit# t#e %ollowin+ assertionsD E)istence or occurrence6 Co*'leteness6 Ri+#ts an& o,li+ations6 Valuation or allocation6 an& Presentation an& &isclosure.

E)tent an& Ti*in+ o% su,stantive Tests ;".T#e au&itor s#oul& &eter*ine t#e e)tent o% su,stantive tests on a 'articular en+a+e*ent. T#e e)tent o% su,stantive 'roce&ures s#oul& ,e ,ase& on t#e various %actors suc# as t#e inten&e& accountin+ control, t#e *ateriality o% an& correlation ,etween ite*s or accounts, an& t#e &e+ree to w#ic# errors are &isclose&. As *uc# as 'ossi,le, t#e au&itor s#oul& ai* to 'er%or* only t#e *ini*u* su,stantive test 'roce&ures necessary to o,tain au&it satis%action. ;0.Su,stantive test can ,e 'er%or*e& at eit#er t#e ,alance s#eet &ate or at an earlier or interi* &ate. Early su,stantive test *ay 'er*it early consi&eration o% si+ni%icant *atters a%%ectin+ t#e year en& %inancial state*ents. To control t#e 'otential incre*ental au&it ris- ,etween t#e ,alance s#eet %ate an& t#e interi* &ate, t#e year en& su,stantive tests can ,e &esi+ne& in a way t#at will 'rovi&e a reasona,le ,asis %or e)ten&in+ to t#e ,alance s#eet &ate t#e au&it conclusions %ro* t#e tests o% &etails at t#e interi* &ate. Per%or* Su,se$uent Event Proce&ures ;4.T#e au&itor s#oul& 'er%or* 'roce&ures as near as 'ossi,le to t#e &ate o% re'ort, &esi+ne& to satis%y t#at all events occurrin+ a%ter t#e ,alance s#eet &ate, an& u' to t#e &ate o% re'ort, w#ic# *i+#t a%%ect t#e %inancial state*ents t#at #ave ,een i&enti%ie&. AU9IT C!NCLUSI!NS AN9 REP!RTIN: Review an& Evaluate (in&in+s o% All Au&it Proce&ures ;;. T#e au&itor s#oul& review an& evaluate t#e %in&in+ %ro* all au&it 'roce&ures 'er%or*e& an& t#e a''ro'riateness o% all au&it evi&ence o,taine& as a ,asis %or t#e e)'ression o% an o'inion on t#e %inancial state*ents. T#ese review an& evaluation involve %or*in+ an overall conclusion w#et#erD

Internal Quality Review Process Reynante S. Ventura, CPA

t#e %inancial state*ents #ave ,een 're'are& usin+ acce'ta,le accountin+ 'rinci'les, t#e %inancial state*ents co*'ly wit# t#e re+ulations an& statutory re$uire*ents, t#e view 'resente& ,y t#e %inancial state*ent as a w#ole is consistent wit# t#e au&itorCs -nowle&+e o% t#e ,usiness o% t#e entity, an& t#ere is a&e$uate &isclosure o% all *aterial *atters relevant to t#e 'ro'er 'resentation o% t#e %inancial state*ents.

;<. T#e treat*ent o% *aterial errors, a&/ust*ents, an& ina&e$uate &isclosures, i% any, s#oul& ,e &iscusse& an& resolve& wit# t#e client. T#e au&itor s#oul& consi&er t#e i*'act o% t#ose *atters in #is re'ort. (or*ulate Ty'e o% !'inion an& Issue Re'ort ;=. T#e %inal ste' in t#e 'rocess is to arrive at an o'inion on t#e %inancial state*ents ta-in+ into account t#e results o% t#e au&it. Ensure All Au&it an& Conclusions are Pro'erly 9ocu*ente& ;>. Au&it &ocu*entation s#oul& recor& t#e au&itorCs 'lannin+, t#e nature, ti*in+ an& e)tent o% t#e au&itin+ 'roce&ures 'er%or*e& an& t#e conclusions &rawn %ro* t#e evi&ence o,taine&. T#e e)tent o% &ocu*entation is a *atter o% 'ro%essional /u&+*ent. or-in+ 'a'ers s#oul& ,e retaine& %or a 'erio& o% ti*e su%%icient to *eet t#e nee&s o% t#e au&itorCs 'ractice an& satis%y any 'ertinent le+al or 'ro%essional re$uire*ents o% recor& retention.