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

Auditing - Essay Example1 localization up the date of the audit report is the new(prenominal) important aspect. The date should not be primarily than the probable last date of collecting only the audit evidences to support the auditors persuasion or the last day of the field work. AU 530 has mentioned the appropriate date while delivering additional copies of the introductory report as demanded by CPA. 2Here subsequent events refer to the events that break occurred between the isotropy sheet date and that of the audit report. The process to identify the events that may require changes or disclosures in the pecuniary statement can be presented accordingly.To ensure that the subsequent events have been recognized, the auditor demand to review all the processes that have been established by the focusing. Careful checking of the minutes of the meeting is also required. The meeting that has been held after the offset sheet date among the shareholders, board of directors and audi tors 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 out 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, droll 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 retrieve the events those have materiality influences on the financial statements to check whether it has been accounted properly in the financial statement. 4The debt instrument of the auditor is to evaluate the appropriateness of the process of using going