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GOOD MORNING/AFTERNOON

GOOD MORNING/AFTERNOON. COMPLETING THE AUDIT. Review for Contingent Liabilities Review for Subsequent Events Perform Analytical Procedures Evaluate Results Evaluate Going Concern Assumption Obtain Client Representation Letter Issue Audit Report Communicate with Audit Committee.

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GOOD MORNING/AFTERNOON

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  1. GOOD MORNING/AFTERNOON

  2. COMPLETING THE AUDIT • Review for Contingent Liabilities • Review for Subsequent Events • Perform Analytical Procedures • Evaluate Results • Evaluate Going Concern Assumption • Obtain Client Representation Letter • Issue Audit Report • Communicate with Audit Committee

  3. AUDIT PROCEDURES FOR CONTINGENT LIABILITIES • Make Inquires of Management • Review Minutes • Reviewing Documents (Contracts, Leases) • Confirmation with Banks • Analyze Legal Expense • Correspond with Attorneys

  4. INQUIRY OF CLIENT'S ATTORNEY(AU 337) • Letter Should Include: • Information Concerning Asserted Claims • Nature of Litigation • Progress of The Case • How Management Will Respond • Likelihood of Unfavorable Amount and Estimate of Amount • Omission of Any Litigation or List is Complete

  5. INQUIRY OF CLIENT'S ATTORNEY (CONTINUED) • Information Concerning Unasserted Claims • Nature of the Matter • How Management Will Respond • Likelihood of Unfavorable Outcome and Estimate of Amount • Confirmation of Understanding to Inform Management Regarding Unasserted Claims • Nature of any Limitations • Lawyer Refusal Requires Adjustment of Audit Report

  6. TYPES OF SUBSEQUENT EVENTS • Condition Existing at the Balance Sheet Date • Condition Not Existing at Balance Sheet Date

  7. AUDIT PROCEDURES FOR SUBSEQUENT EVENTS • Make Inquires of Management • Review Minutes • Review Internal Statements Prepared Subsequent to the Balance Sheet Date • Review Records Prepared Subsequent to the Balance Sheet Date • Obtain Letter of Representation • Correspond with Attorneys

  8. END OF AUDITANALYTICAL PROCEDURES • Assess Conclusions Reached • Evaluate Overall Financial Statement Presentations • Data • High Level of Aggregation • Financial • Type • Trend Analysis • Ratio Analysis

  9. EVALUATION OF RESULTS • Evaluate Misstatements Discovered • Evaluate Proposed Adjustments Not Recorded (Individually and in Aggregate) • Evaluate Financial Statement Disclosure • Obtain Letter of Representation • Review Working Papers

  10. GOING CONCERN EVALUATION • No Specific Procedures Required • If Matters Come to Auditors Attention During Audit Suggesting Going Concern Problems • Evaluate Management’s Plan to Address Going Concern Problems

  11. CLIENT REPRESENTATION LETTER(AU 333) • Document Written by the Client to the Auditor • Purpose • Confirm and Document Oral Representations Made by the Client • Reduce the Possibility of Auditor-Client Misunderstandings • The Letter is Not to be Used as a Substitute for Other Audit Procedures

  12. MANAGEMET REPRESENTATION LETTER (CONTINUED) • Information Included In Letter • Management Has Responsibility for the Financial Statements • Financial Statements Are Presented In Accordance with GAAP • Availability of All Financial Records And Related Data • Completeness And Availability Of Minutes Of Meetings Of Stockholders, Directors, and Committees of Directors • Completeness of Communications From Regulatory Agencies • All Transactions Have Been Recorded • Fraud Involving Management or Employees • Plans That May Affect Presentation of Assets And Liabilities • Related Party Transactions • Guarantees • Proper Disclosure of Significant Estimates and Concentration of Risks • Violations of Laws or Regulations • Unasserted Claims • Other Liabilities and Gain or Loss Contingencies • Title to Assets, Liens or Encumbrances on Assets, and Asses Pledged as Collateral • Compliance with Contractual Agreements • Subsequent Events

  13. MANAGEMENT REPRESENTATION LETTER (CONTINUED) • Letter Is Required • If Client Refuses Adjustment of Audit Report is Required

  14. ISSUE REPORT • Cross Reference Information Contained in Financial Statement to Working Papers • Read Other Information Contained in the Annual Report • Determine Type of Opinion Based on Evaluation of Audit Evidence • Cold Review of Working Papers

  15. COMMUNICATION WITH AUDIT COMMITTEE • Auditor Responsibility Under GAAS Audits • Auditor Responsibility for other Information Included with Financial Statements • Significant Accounting Policies (SAS 90 Quality) • Process Used in Obtaining Management Judgments • Audit Adjustments

  16. COMMUNICATION WITH AUDIT COMMITTEE (continued) • Auditor Views on Matters Other Auditors Were Contacted • Disagreements • Major Issues Discussed with Management Prior to Retention • Difficulties Encountered During Audit • Reportable Conditions • Misstatements and Frauds

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