Auditing Essay Example | Topics and Well Written Essays - 1250 words - 1

Auditing - Essay Example1Fixing up the date of the audit report is the some another(prenominal) important aspect. The date should not be earlier than the probable last date of collecting all the audit evidences to support the auditors vox populi or the last day of the field work. AU 530 has mentioned the appropriate date while delivering additional copies of the previous report as demanded by CPA. 2 here subsequent events refer to the events that have occurred between the balance sheet date and that of the audit report. The process to identify the events that may require changes or disclosures in the monetary statement can be presented accordingly.To ensure that the subsequent events have been recognized, the auditor needs to review all the processes that have been established by the management. Careful checking of the legal proceeding of the meeting is also required. The meeting that has been held after the balance sheet date among the shareholders, board of directors and audit ors is regarded here. Diminutive observation of the interim financial statement is also required. The other way of determining the subsequent events is to make inquiry of the lawyers who are concerned with litigation and claim. Even management can also be inquired to find turn up the events occurred after the balance sheet date. The auditor needs to be conscious regarding certain factors namely development of any risk factor or contingencies, out-of-the-way accounting adjustments and the status of the items those are accounted on the basis of the inconclusive data. 3Even the departments or the components of an entity that have been audited by any another auditor, should also be audited by the principal auditor. The auditor needs to observe the events those have materiality influences on the financial statements to check whether it has been accounted properly in the financial statement. 4The function of the auditor is to evaluate the appropriateness of the process of using going