Auditing and

Assurance Standards

By:
Roshan Samuel
III B’Com “B”
 AAS 19 – Subsequent
Events

The purpose of the AAS is to establish standards on the

auditor’s responsibility regarding subsequent events.

The AAS – 19 states that:

“The auditor should consider the effect of subsequent

events on the financial statements and on the Auditor’s
Report.”
 Subsequent Events

It refers to significant events occurring

between the Balance Sheet date and the date

of the Auditor’s Report.

 Auditor’s Procedures
 Reviewing management procedures
 Reading minutes of meetings of shareholders, BOD held
after BS date
 Reading entities latest available interim financial
statements
 Inquiring or extending previous written or oral inquiries
with company lawyers
 Inquiring with management of any subsequent events.
 Conclusion

When auditor is aware of subsequent events

which materially affect the financial
statements, he should consider whether the
effect has been accounted for in the
financial statements.
 Effective For

All audits commencing on or after 1st

April 2000
 AAS 34 - Audit Evidence -
Additional
Considerations for
Specific Items

The purpose of this AAS is to establish

standards on the auditor's responsibilities,
procedures and provide additional guidance
to that contained in AAS 5, "Audit
Evidence", with respect to certain specific
financial statement amounts and other
disclosures.
 Components of AAS –
34

 Part A: Attendance at Physical Inventory Counting

 Part B: Inquiry Regarding Litigation and Claim

 Part C: Valuation and Disclosure of Long-term Investments

 Part D: Segment Information

 Part A: Attendance at
Physical Inventory
Counting
 Auditor must obtain sufficient appropriate audit evidence
during his attendance at physical inventory counting
 Existence and condition
 Where its impracticable, consider alternative procedures to
provide sufficient appropriate audit evidence
 Part B: Inquiry
Regarding Litigation
And Claims
 "Litigation" is a lawsuit or legal action including all proceedings therein.
"Claims" is a right to payment or right to an equitable remedy for breach of
performance
 Material effect on the financial statements
 Communicate with the entity's lawyers and such other professionals to whom
the entity engages for litigation and claims
 Part C: Valuation And
Disclosure Of Long
Term Investments
 AS 13

 Valuation and disclosure

 Ownership and existence

 Part D: Segment
Information

 Information to be disclosed in respect of reportable

segments as given in Accounting Standard (AS)17,
Segment Reporting

 When it is material to the financial statements, he should

obtain sufficient appropriate audit evidence regarding its
disclosure
 Effective For

 This AAS becomes operative for all audits

related to accounting periods beginning on or

after 1st April, 2005.