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Hi sir,
“Discuss the implications of the matters described above on the completion of the audit”
What do we suppse to mention/talk about here? In other words,What are the points should we talk about here?
I didnt understand the requirement
Thanks
Please remember to label your posts with more meaningful names (e.g. if this is Q5 Darren Co from J15).
It means you have read through the scenario and identify the issues that need to be resolved (which may require more audit work) before the audit opinion can be formed and auditor’s report signed.
You have to imagine yourself in the scenario “The audit is nearly complete and you are reviewing the audit working papers. The audit senior has brought several matters to your attention:”
The sorts of things you can think about for each matter:
Is it material? (So ASSESS it and say whether or not its material)
Is the accounting treatment correct?
Is it an uncorrected misstatements (i.e. we can see what the correct amount/treatment should be – only the client doesn’t want to change it)?
Do we need more evidence to resolved the issues (prompt is in the requirement “recommending any further actions which should be taken by the auditor”)?
Have we fulfilled all our responsibilities as auditors in accordance with ISAs? (e.g. if there is still “other information” to be included – ISA 720 is relevant).Hi sir,
Whever the q is asking about matters/implications of matters described.
Should we discuss the below points?
Materiality
Accounting treatement
Risk of mm
Evidence
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