Principles of auditors procedures, Auditing

Principles of Auditors Procedures

i. The financial statements should be prepared on the source of conditions existing on the balance sheet date.

ii. The material post balance sheet event needs changes in the amounts to be involved in the financial statements whereas:

  1. This is an adjusting event or
  2. This indicates such application of the going to relate assumption to entire or a material part of the company is not suitable.


iii. The material post balance sheet event should be disclosed whereas:

  1. This is a non-adjusting event of which materiality and its non disclosure would affect the capability of the users of financial statements to reach a appropriate understanding of the financial position and
  2. This is the maturity and reversal after the year finish of a transaction entered into before the year finish, the substance of that is primarily to change the appearance of the company's balance sheet.


iv. So in respect of each post balance sheet event that is utilized to be disclosed under paragraph (iii) above, the subsequent information should be stated through way of notice in the financial statement:

  1. The behaviour of the event and
  2. The estimate of the financial effect or a statement such is not practicable to make that as estimate.

v. Such estimate of the financial effect should be disclosed before taking account of taxation and the taxation implication should be described where essential for a appropriate understanding of the financial position.

vi. The date on that financial statement is approved through the board of directors should be disclosed in financial statements.

Posted Date: 1/28/2013 2:21:20 AM | Location : United States







Related Discussions:- Principles of auditors procedures, Assignment Help, Ask Question on Principles of auditors procedures, Get Answer, Expert's Help, Principles of auditors procedures Discussions

Write discussion on Principles of auditors procedures
Your posts are moderated
Related Questions
Negligence in General There is no case against auditors and this made it hard to be accurate as to where the auditor’s legal liability falls.  We require therefore referring to

Procedures followed in Conducting an Audit Procedures generally followed in conducting an audit by more than one firm of accountants and the division of work between them.

the reliabity of audit evidence defers with source is that true

Counter - Indications That the auditor has found indications of going related to non-applicability does not of itself justify instantly conclusion that the entity is not a goi

The modern integrated audit approach combines elements of various traditional audit areas having financial, operational, and information technology.

what is the effect of fraud and error on the financial statement.please I want simple answer

In order for auditor to perform audit as per GAAS, only programming independence is required from the audit client. Ans: Yes I agree with the statement as: Programming independe

I have a auditing case study i need to complete in chapter 8 of Auditing & Assurance service (fifteenth edition) by Alvin A. Arens, Randal J. Elder and Mark S. Beasley. I don''t kn

Standard Defines Development and Research The standard defines development and research as follows: (a) Research - planned and original investigation undertaken along with

methods of determining break even point