Presentation on theme: "Learning Objectives LO1 Describe the balance sheet account groups that the major revenue and expense accounts are associated with, as well as the substantive."— Presentation transcript:
Learning Objectives LO1 Describe the balance sheet account groups that the major revenue and expense accounts are associated with, as well as the substantive analytical procedures applied to audit revenues and expenses. LO2 Outline the overall analytical procedures to be performed at the final stage of the audit, including analysis of the income statement, cash flow statement, financial statement presentation, and disclosures. LO3 Explain the purpose of lawyers’ letters and how they are used at the completion stage of an audit to identify any contingencies and claims. 1
Lawyer’s Letters to Detect Contingencies The procedures of obtaining a lawyer’s letter and a letter of representation are deferred to the last day of field work. These representations are dated the last day of field work. Auditors are responsible for determining that all important events to the last day of field work are reflected in the statements. LO3 2
Communication with Auditee’s Lawyer Auditors are required to make certain inquiries designed to elicit specific information. In a letter, the client requests the attorney to provide the auditor with information regarding contingencies, litigation, claims, and assessments. In addition, other audit procedures would be designed to determine materially contingent liabilities. LO3 3
Your consent to our cookies if you continue to use this website.