Which are the auditors interest in post balance sheet events?

      

Which are the auditors interest in post balance sheet events?

  

Answers


Wilfred
Timing considerations
a. Balance sheet date.
b. Date the directors approve the draft accounts.
c. Date the auditor signs his audit report.
d. The intervening period from the date of signing the audit report to the date of dispatching the audited financial statements to the shareholders.
e. An AGM at which the members either adopt or reject the financial statements.

At the AGM if the financial statements are adopted then the auditors’ responsibility towards those
financial statements ceases.
The auditors’ procedures with regard to post balance sheet events
i. Discuss with management whether they are of nay such events and if so obtain a full listing of those events.
ii. review minutes of management’s looking for such matters as losses of major contracts,
acquisition of a major new business, approval of capital expenditure, the effect of man-made
and natural disasters and management plans on discontinuance of sectors of the entity.
iii. Review major transactions documents and primary books such as material payments, material receipts, material sales and material purchases.
iv. Consider whether all material post balance sheet events have been identified and accounted for properly.
Wilfykil answered the question on April 12, 2019 at 06:53


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