Besides the search for contingent liabilities and the review for subsequent events, the auditor has four...
Besides the search for contingent liabilities and the review for subsequent events, the auditor has four important final evidence accumulation responsibilities, all of which are required by current professional auditing standards. Discuss each of these four responsibilities and give your opinion on which of the four is the most significant step for the auditor.
Homework Answers
Solution
The four responsibilities are:
• Final analytical procedures performed as a final review for material misstatements or financial problems and to help the auditor take a final objective look at the financial statements.
• Evaluate the going concern asstatement
• Obtain a management representation letter documenting management's most important oral representations during the audit.
• Consider supplementary information included in published annual reports pertaining directly to the financial statements.
# In view of my opinion all the steps are significant
However, the most significant step is step-3, auditor need to obtain a management representation letter documenting management's most important oral representations during the audit.
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