Post balance sheet events, Auditing

Post Balance Sheet Events

Post balance sheet events occupy a very significant place in auditing and hence there is generally a program of work which is carried out in this area. This involves:

i. A routine examination of that events such as group of debts, payment of creditors, sale of stocks, resolution of pending litigation;

ii. A comparison of significant ratios previous to and after the year finish, seeking explanations for several material differences as they may show the presence of non-adjusting or adjusting events or have going to relate implications.

iii. Verification of all material provisions and contingent liabilities at the newest feasible date prior to signing of the accounts to check whether few additional evidence exists such may affect original estimates required.

iv. Review of director's minutes looking for any main new losses of customers or contract or losses of major contracts, and changes in accounting policy, capital expenditure commitments, and new borrowing or share issues, abnormal transactions or extra-ordinary, changes in market situation or products.

v. Discussions along with the management, a review of management accounts, review of cash flow projections and profit forecasts, review of non-risk areas and

vi. Review of relevant external information as reports in newspapers. His review might be as near as probable to the date of signing the audit report.

Posted Date: 1/28/2013 2:23:02 AM | Location : United States

Related Discussions:- Post balance sheet events, Assignment Help, Ask Question on Post balance sheet events, Get Answer, Expert's Help, Post balance sheet events Discussions

Write discussion on Post balance sheet events
Your posts are moderated
Related Questions
What techniques used during an audit? Ans)  ? Be professional at all times. Avoid being judgmental. ? Follow safety procedures, clean room procedures, and all other needed pr

The Need for an Audit If you take an example of a modern large liability company, we can clearly distinguish between the providers of funds and those who control those funds. The

Detail work on stocks - Audit of Current Assets Detail work on stocks is imperative in an audit, since there are other review tests that are equally important and these includ

Role of Accountant The Accountant's Role Every year a lawyer who such handles client's money is used to created to the Law Society of US a report through a qualified accoun

Forms of evidence a) Observation: is usually witnessing internal control and book-keeping procedures. It includes attendance at wages pay out. Observation of stock-take, open

For each of the following situations, describe how risk of material misstatement should be assessed and what effect the assessment will have on detection risk. (i) Johnson is a

Transferee Liability - A person may be held LIABLE for another taxpayer's delinquent taxes if: 1. The transferee received assets of the transferor-taxpayer; and 2. The transf

types of EDP accounting system and impact of EDP accounting controls

Question: Explain the type of audit conducted by the sponsor when he suspects or comes to know that the site will be audited by FDA. A Mention type of audit conducted by the