Completing the Audit

Answer the following questions:

Identify and describe the transaction$-$related and balance$-$related presentation audit objectives. Explain how many of the procedures to test presentation objectives are integrated with tests performed in earlier stages of the audit.

Five months after issuing an unqualified audit opinion and an unqualified opinion on internal controls for the audit of the year ended December $31,2023$ for a large publicly traded client, the client and the auditor become aware of a material misstatement in sales revenue for the year in question, which was the result of a material weakness in internal controls. Is this a subsequent event or a subsequent discovery of facts? What are the auditor$$s responsibilities related to the audit opinion and the opinion on internal controls?

Compare and contrast the accumulation of audit evidence and the evaluation of the adequacy of the disclosures in the financial statements. Give two examples in which adequate disclosure could depend heavily on the accumulation of evidence and two others in which audit evidence does not normally significantly affect the adequacy of the disclosure.

Distinguish between a management letter and a letter about significant deficiencies in internal control. Give examples of items that might be included in a management letter.

An audit partner believes that the final summarization is the easiest part of the audit if careful planning is followed throughout the audit. They make sure that each segment of the audit is completed before they go on to the next. When the last segment of the audit is completed, they are finished with the audit. They believe this may cause each part of the audit to take a little longer, but they make up for it by not having to do the final summarization. Evaluate this approach.