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KEYWORDS
independent
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Independent
examination
avoidance
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expression of opinion on the
financial statements of an entity
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duly appointed
pursuit of that appointment
by
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assurance
A three
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material
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whether the
extent of procedures
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procedures
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Criteria
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evaluation 1 measurement
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reliable
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Material uncertainty
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contains
audit file ,
the FS being
✓
Quality control ( ISA 220 )
policies
quality control
→ the
objective is
control
leadership
the EL is
responsible for
the overall
Ethics
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appropriate
are
partners
are ;
QC requirements
•
applicable legal
standards &
1 engagement
issued by the firm
reports
o
assurance that;
professional
requirements
regulatory
and
procedures are the responsibility
provide reasonable
to
audit complies with
o
→
control systems ,
States that quality
quality
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audit firm
of the
performed
work
audited + audit
alert
the El has to remain
,
quality of the audit engagements
and
through observations
enquiries for
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-
El has to be
appropriate
El must be
to properly
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the
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additi ons
listed entities
audit
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and
capabilities
direction ,
supervision
reviews
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are
report
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perform
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objective
significant judgments made by the engagement team
involves ;
Discussion
significant matters with
of
EL
FS and the audit report
of the
Review of selected audit documentation
Review
Evaluation of
the
conclusions
reached
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& consider
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consider the team 's evaluation of the firm
consider it
consider
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y
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interest
Public
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relationships
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El has to
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#rraauuddaannddeerrrroorr
I :*:#informers
theft
→ open
<
assets
of records I misappropriation of
deliberately falsifying
in the
management
→
responsibility to prevent and
's
communicated
Fraud must be
→
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material misstatement
remember :
management
relevant
to know
non
.
that
-
events will
-
existed at the end of the
in
④
not
going
January ( year end is Dec)
to
liquidation
be in a bad financial position
possible liability arising from past
existence of the liability will only be confirmed by
Future events
Different treatments of liability 's
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have written A
the
condition
December
no
Cr
→
provision for
possible obligation but
-
possible
existence
future
events
use
the
maybe
require
disclose
in
notes to
Meyerwould
i
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leave it
V
need to pay ?
#
dont think
maybe
likely
provision is
needed
in flow
→
disclosure
needed
is
assets 's
of the economic
virtually certain
-
so
→
nothing is
needed
benefits
it's not
a
is
contingent
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show in SFP
pr Assets
Cr
most
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it
the
arising From past events ,
will only be confirmed by
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disclose in
but
y
asset
whose
best estimate
does not
likely to be obligated
,
existed
existed
FS
#
•
FS V
not
adjust
kitties * Uconn#nnggeenntaasssee
-
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IF inflow is probable
notes to FS v
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outflow of resources
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need to
notes to
off
the Factory
)
the fire
after
,
down in January
-
liability V
Dr expense
after the
year end,
requires the outflow
for the
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end is Dec)
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provision
immaterial
as a,
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factory burning
in December, A would probably
should
believe uncorrected misstate
arose after the reporting
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representation from mgmt
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require the FS to be adjusted
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example :
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requires the FS to be adjusted
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IS A 580
auditor must obtain
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acknowledges
o
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all
transactions
representation t
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alone
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provided the auditor with
it has
o
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responsibility for the preparation
applicable Financial reporting framework
its
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of the FS in
with the
accordance
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management
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management
been
recorded
audit
evidence
have
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reflected
a
in the FS
provide sufficient appropriate audit evidence for an assertion
:
's intentions are required consider
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reasons for management 's intention
o
intentions
management's ability to pursue its
intentions
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past history in carrying out
o
o
management
0
Other
info
may contradict
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useful
intention
management's
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in Lor ;
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typically found
subject matter specific representations
auditor
fraud has been disclosed to
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any knowledge
to the
examples of
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all known
o
auditor
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t
1 actual
litigation
accounted
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and
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the
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concern
arise when 's
potential problems
o written representations
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to the date of
occurring subsequent
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claims
I disclosed
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assessment
other audit
representations
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adjusted I disclosed
& its
matter remains
ethical values , etc
audit evidence
on the
feasibility
evidence
FS it the written representations
to
unsolved
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