Beruflich Dokumente
Kultur Dokumente
·~ ·1
.;i
I':
632 ~· .1
~
1
..
··1
CHAPTER 9 I
L
·j
'•
I
Completing the [:
1
Audit and Post-audit :
Responsibilities
ANALYTICAL PROCEDURES
, I I
I
. r
, 3
642 CPA EXAMINATION REVIEWER: AUDITING THEORY
:--:
646 CPA EXAMINATION REVIEWER: AUDITING THEORY
, ......................................_·~1~1----~-: ;: :,.,.
---- -~ --- - ...__ ___ ..;......___ -
. ·-.'=·
-~
-=-="-~~....::...;.;;:~,._;;.,.:;;,.,,;.
· -~;:..·"""",;;r..;.:._,..,,,,__:_..,;;;...
·-
PSA 560 provides that after the financial statements and the
auditor's report have been issued, the auditor has no obli~:~
tion to make any inquiry concerning such financial sta
men ts.
·sted at
But, if the auditor becomes aware of a fact which exi that
the date of the auditor's report and which, if known ~~tor's
date, may have . caused the auditor to rpodify the a~:ncial
report, the auditor should consider whether the ~~h Jlll!Il'
statements need amendment, discuss the matter wi
cHAP
TER 9 Completing the Audit and Post-audit Responsibilities 653
If, after the report has been issued, the auditor becomes
aware of a fact which existed at the report date and which, if
known at that date, may have caused the auditor to modify
the report, the auditor should consider whether the finan-
cial statements need revision, discuss the matter with man-
agement, and take actions appropriate in the circumstances.
After the report has been issued, the auditor has no resp~n·
sibility to make any further or continuing inquiry regardin~
the financial statements covered by the report, unless fac
that may affect the report come to his/her attention.
ctions
Answers A, C, and D are incorrect because these a that
might be appropriate if the auditor had discovered facts
existed at the date of the report.
Financial
• Net liability or net current liability position .
g completing the Audit and Post-audit Responsibilities 657
ct-IApfER
Operating
• Loss of key management personnel without re-
placement.
• Loss of a major market, franchise, license, or princi-
pal supplier.
• Labor difficulties or shortages of important supplies.
Other
• Non-compliance with capital or other statutory re-
quirements.
• Penaing legal or regulatory proceedings· against the
entity that may, if successful, result in claims that are
unlikely to be satisfied.
• - > ~::::: ;-_~-~· -· • -• .,._ - .. :~.;.:•.J :,._-;. ~ · :ni(1~1!&. "'1+ liililllltJ
--··-t~·: ...•~~~ . '.:..;:.~.~
1~·!.;J·;,;;i"i>.i;'•l.lo
' . . .~~~~. .. . ...,.. .llilllll. . . . . . · ll*"...
ijiOl ·-. .~----+;;.
• ..,·w.
~-~
'": !"": ::.::...
"""-.~
-····
=)
·-
r -
... - r..... ~ ~~,.-. .. ·- .. . . .. : -
I l
668 CPA EXAMINATION REVIEWER: AUDITING THEORY
~--......lllLl.1!&1.lii!m!!!!IJ~........~-·~E!!&!J~
. !!-4!2Ml~~JIL&EBl!l.lilmlllll. . . . . . . . . . . . . ...,__.,,,,_..~~
'1
-
670 CPA EXAMINATION REVIEWER: AUDITING THEORY
48. The primary reason an auditor requests that letters of. in·
quiry be sent to a client's attorneys is to provide the auditor
with . d as·
A. A description and evaluation of litigation, claims, an
sessments that existed at the balance sheet d~te. eri·
B. The attorneys' opinions of the client's historical exp
ences in recent similar litigation. nage·
C. Corroboration of the information furnished by ma
ment about litigation, claims, and assessments. ding or
D. The probable outcome of asserted claims and pen
threatened litigation.
. for se·
PSA 501 (Audit Evidence-Specific Considerations risk of
lected Items) states that when the auditor assess~s .~ 5 thllt
material misstatement regarding litigation or c at
9 completing the Audit and Post-audit Responsibilities 675
cwV',-eR
been identified or when the auditor believes they may
ha~~ the auditor should seek direct communication with
exis:ntity's legal counsel. Such communicatien will assist in
the ining sufficient appropriate audit evidence as to wheth-
obtaotentially matena · 1 l'1t1gat1on
· · an d cIaims are known an d
er p agement's estimates of the financial implications, in-
eluding costs, are re 1·1abl e.
111an
:ill
hen it is considered unlikely that the entity's legal counsel
respond to a general inquiry:
• A list of litigation and claims.
• Management's assessment of the outcome of the liti-
gation or claim and its esHmate of the financial im-
plications, including costs involved.
• A request that the entity's legal counsel confirm the
reasonableness of management's assessment and
provide the auditor with further information if the
list is considered by the entity's legal counsel to be
incomplete or incorrect.
C. An unmodified opinion. .
D. A qualified opinion or a disclaimer of opinion.
54 Wh' h · t'S
· ic of the following statements extracted from a clien
lawye~s letter concerning litigation claims and assessments
most likely Id ' ' . · n1
A "I . wou cause the auditor to request clanficatio ·he
· d believe that the action can be settled for less than t
amages claimed."
\
. L&liE.JWJ,.£ JJ&E -
-
680 CPA EXAMINATION REVIEWER: AUDITING THEORY
TRUE OR FALSE
•
682 CPA EXAMINATION REVIEWER: AUDITING THEORY
3, B 17. B 31. A 45 .. A
TRUE OR FALSE