audit structure

hi,

Audit process has three main stages it starts with accepting the appointment: if acceptance of audit engagement not be approved by audit firm the audit process over financial statements wont be started. ONCE the egagement was accepted by the audit firm, then they may start the next two stages: the interim audit and the final audit. Most audit tests and substantive procedures occure during this, interim stage of audit. But the audit finalization and issue of REPORT is done in final stage of audit. ONCE the audit report is issued after year end ( after reviweing subsequent events and considering their impact on financial statements) they have no other responsibility with that audit. But some matters may happen later, after the report was issued. So it depends on the facts happening after signing audit report and wether the auditor informed on them, otherwise the audit job upon issuing report is finished.

example by dates:

acceptance of engagement on 25. Nov,2010
start planning , initial strategy development just after that day
interim stage continue….Draft interim reports is now available( probably)
now it is the company year end: 31,Dec,2010
Final stage starts
Subsequent events are reviewed and considered by auditors
discussion with management and other evidence,,, but not like the one in interim stage…
Finalisation and issue of independent audit reprot according to timetable mentioned in the engagemnent letter upon accepting the audit deal of that client.
say on 21,march,2011… this is the end date of audit ( [REMEMBER: the report is the final outcome of audit))

Any events after this date if happen,,, first of all should be informed to auditors, if material,,, any way audit was finished so, no responsibility for auditors… but still they will be responsible if they get known about that events too. So they take relevent actions…. and if a new report is issued on the changed circumstances then the final date for considering the end of audit would be the date of issuing new- changed or modified audit report.

i hope was able to clearly explain your questions.