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sir there is not a single video(by a qualified teacher) on you tube which says you have to amend audit report if the event has occured after the audit report date
they all say that the fact becomes known after audit report date, BUT the event must have occured before audit report date
but how the report is incorrect if the event itself has occured after report date
Additonally, there are youtube videos of Amandalovestoaudit
Interpreting the Auditing Standard on SUBSEQUENT EVENTS ISA/ASA560
YouTube · AmandaLovesToAudit
Or farhat lectures
Subsequent Events Or Post Balance Sheet Events Explained.
YouTube · Farhat Lectures. The # 1 CPA & Accounting Courses
17 May 2022ALL OF THEM ARE OF THE VIEW THAT IF AN EVENT OCCURS AFTER AUDIT REPORT DATE, NOTHING IS TO BE DONE
Sir there is another question amberjack s/d 2019
Where the receivable ledger has access to master file and it is given a deficiency SEPARATE from credit limit deficiencysir in that same question in purchase part
“All members of this department have full access to the supplier master file data.”
this is a deficiency mentionedBut sir in general scenario
Any event after auditor report date should NOT BE CONSIDERED AT ALL FOR THE CURRENT YEAR END.
since this is in line ias 10 events after reporting periodstudy question ch 29 oilrakers co
where the accidental release of toxic chemicals occured after audit report was signed(event not occuring between end date and auditor report date) but they said to disclose.
i saw many videos on youtube where examples were given, like customer declared bankrupt after auditor report date, in which case the answer was to not do anythingOkay now i got it
Summary
All items above performance materiality must be tested in detail.
And for all transaction below performance materiality sampling is a good option….take a sample and test them in detailRight?
So in basic there is no compulsion to test in detail all the items above materiality
Its just that if there is a small population, we can test all item
Right?
sir i dont understand why study hub is saying
All matters identified as material must be subject to tests of details
shouldnt it be using sampling or some other method as you said?So you mean if i am testing in detail
I will take all transaction above performance materiality only for sampling?
I exactly want to know how test of details is done relative to performance materiality
Is it like they check every transaction above performance materialoty level by tests of details?
But sir ensuring that the person reconciled does not reperform it ensures segregates the duties?
sir authorized by statute is one of the ways for voluntary disclosure in acca code of ethics.
For professional duty to be in force…it is important not to be prohibited by law…right?
For volutary disclosure i want to ask
1) does it mean like the auditor is free whether to disclose or not in certain situations??
2) in the tax authority example, i wanted to ask if the padticular information they are asking are,based on legal advise, authorised by statute but not obligatory….then the auditor is free to disclose ….right?Also sir one last question
If for example a tax personnel or police approaches me(auditor) then
I will see his statutory authority and
If it is under obligatory disclosure i must disclose information
If not, then I CAN DISCLOSE INFORMATION EVEN THOUGH I HAVE NOT TAKEN PERMISSION OF CLIENT IN CASE IT IS POSSIBLE UNDER VOLUNTORY DISCLOSURE.
RIGHT?What i guess is
In case of obligatory disclosure….the disclosure is must.
Wherease when authorised by statute and voluntary disclosure is there….it says that you have statutory right to disclose….but you free whether to disclose or notBut if we think that the employee who lack the skills will not be able to prevent the material misstatement, this means it is control risk?
But then it seems obvious that if client has indulged in money laundering, why would he give exisiting aiditor permission
thank you sir.
one last doubt, for example if a firm has just begun the auditing business and has only one senior partner(like ceo etc..) in this case if the senior partner:
1) has an immediate family member a director in client
2) has taken a preferential loan from client
or likewiseIN THIS CASE THE ONLY OPTION LEFT IS THAT THEY CANNOT ACCEPT THE AUDIT ASSIGNMENT SINCE THERE IS NO ONE TO TAKE THE POSITION OF SENIOR PARTNER FOR THE GIVEN AUDIT.
RIGHT SIR?Yes sir, i understood that
But what if the firm refuses to sever the ties
Then the only way is resignation of the firmThanks Kim!
I actually asked to confirm my own stance,since in becker book the answer was that the firm should resign. I thought this is quite unreasonable.