ISA 315 A11 (c) Presentation and Disclosure Accuracy and valuation Occurrence, rights and obligations Completeness Classification and understandability Source document Financial statements Substantive test of details Accuracy and valuation Agree all numbers in the financial statements to auditing working papers Completeness Use a disclosure checklist to identify any incomplete Occurrence, rights and obligations Inspect financial statements that all the transactions disclosed pertain and have occurred Classification and understandability Inspect the financial statements that the wording is clear and understandable Inspect the financial statements that are disclosed in accordance with IFRS Analytical procedures Use comparisons e.g. Gross margin, Changes in sales, Change in debtors balances, Cost of sales and inventory, Goodwill, property plant and equipment Contingent liabilities and Commitments Example Pending or threatened litigation Actual or possible claims and assessments against the equity Income and tax disputes Products defects or warranties Guarantees of obligation Agreement to purchase receivables that have been sold During the audit Inspect minutes of meetings Review contracts, loan agreements, leases, and correspondents from government and regulatory bodies Review tax returns and SARS correspondence Inspect bank confirmations During audit completion Inquiry and discussion with management about its policies and procedures for identifying, evaluating and accounting for contingencies Examine invoices form lawyers for pending or threatened lawsuits Obtain a legal letter that describes and evaluates any litigation, claims or assessments Obtain written representation from management that all litigation, asserted and unasserted claims, and assessments have been disclosed in accordance with the applicable financial reporting framework
Review audit work papers for signs of contingencies
Obtain and evaluate letters from the clients attorneys(by letter of audit inquiry) Inquiry of clients attorney for Pending litigation Asserted and unasserted claims with or assessment with which the client has involvement A request of the law firm to identify any unlisted pending or threatened legal actions Subsequent Events Audit procedures Inquire from management Correspond with attorney Review internal statements prepared subsequent to balance sheet date Examine minutes issued subsequent reporting to the balance sheet date Obtain managements representation letter Management Representation Letter Purpose of the letter To impress upon management its responsibility for the assertions in the financial statements To remind management of potential misstatements or omissions in the financial statements To document the responses from management to inquiries about various aspects of the audit Four categories in management representation letter Responsibility for financial statements Completeness of information Recognition, measurement, and disclosure Recording and Disclosing subsequent events Communicate with the Audit Committee and Management Communicate internal control deficiencies Other communication with audit committee Communicate fraud and illegal acts Management letters
Tani G. Cantil-Sakauye Conflict of Interest Misconduct: Improper Summary Dismissal of Supreme Court Petition for Review by Disabled, Indigent Pro Per Litigant - Commission on Judicial Performance Director Victoria B. Henley CJP Chief Counsel San Francisco - California Supreme Court Justice Marvin Baxter, Justice Joyce Kennard, Justice Leondra R. Kruger, Justice Mariano-Florentino Cuellar, Justice Goodwin H. Liu, Justice Carol A. Corrigan, Justice Ming W. Chin, Justice Kathryn M. Werdegar, Justice Tani G. Cantil-Sakauye Supreme Court of California
California Judicial Branch News Service - Investigative Reporting Source Material & Story Ideas
Norvin Rieser, Milton S. Koblitz, George S. Champlin, E. M. Dart Mfg. Co., Lillian Boehm, Bernard Fein, Kathryn P. Braithwaite and Edward F. Quirke, and Emanuel Josephson, Rubin Slavsky, Raymond Wiley and William W. Lange v. The Baltimore and Ohio Railroad Company, 228 F.2d 563, 2d Cir. (1955)