Aggregating evidence

Question 1

audit completion

Answer 1

• contingent liabilities
• subsequent events
• accumulate evidence
• evaluate results
• (report)

Question 2

contingent liabilities

Answer 2

a potential future obligation to an outside party for an unknown amount resulting from activities that have already taken place

Question 3

subsequent events

Answer 3

subsequent events are events or transactions having a material effect on the financial statements that occur after the balance sheet date but before audit report date

Question 4

subsequent events adjust

Answer 4

events that provide additional evidence about conditions that existed at the balance sheet date

Question 5

subsequent events disclose

Answer 5

events that occur after the balance sheet date and do not relate to conditions that existed at year-end

Question 6

final analytical procedure

Answer 6

• consider the adequacy of evidence
• unusual or unexpected balances/relations
• unusual items not previously identified

Question 7

going concern

Answer 7

• the auditor has a responsibility to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern (if there is such a concern, auditor must draw attention to it in an emphasis of matters paragraph)

Question 8

representation letter

Answer 8

confirm and document oral statements and all relevant information is provided by management to the auditor