Question
1. Notify management and those charged with governance that the auditor's report is not to be relied upon. 2. Inquire of management whether significant changes
1. Notify management and those charged with governance that the auditor's report is not to be relied upon. |
2. Inquire of management whether significant changes in working capital have occurred. |
3. Compare the financial statements currently being audited with those of the prior period. |
4. Read available minutes of meetings of shareholders, directors, and committees. |
5. Add an other-matter paragraph to the report on revised financial statements. |
6. Determine that immediate steps are taken to inform all parties who are relying on information contained in the financial statements. |
7. Recalculate depreciation charges for plant assets sold after year end. |
8. Investigate changes in noncurrent debt occurring after year end. |
9. Discuss the matter with management and those charged with governance. |
10. Obtain a letter of inquiry from external legal counsel. |
For each audit procedure, select from the option list provided whether the procedure most likely provides evidence about subsequent events, subsequent discovery of existing facts, or neither for each audit procedure below. Each choice may be used once, more than once, or not at all.
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