We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Auditing - Essay Example

Comments (0) Cite this document
Auditing Table of Contents Subsequent Events 3 Solutions 4 Reference 8 Bibliography 9 Subsequent Events According to the Auditing Standard under section 560, when external auditors conduct auditing in a firm, they usually refer to the historical financial evidences that connect to the present financial statement…
Download paper
Read TextPreview

Extract of sample

These occurrences are known as subsequent events.1 There are two types of subsequent events which an external auditor must evaluate: Firstly, the auditors must consider those evidences which involved conditions with respect to those that existed at the date of the balance sheet and it would affect the financial statements. All the information that is achieved prior to the issuance of the financial statements should be taken into consideration. The second types of event are those events that did not existed even at the time of balance sheet. Some of these types of events are such that disclosing this information would save the financial statements form being misleading. The effects of the subsequent events can be seen in the assets such as receivables and inventories or in the estimation of liabilities because these kinds of events represent the functionalities which exist over a long period of time.2 After the balance sheet date is over, there is a time period when the auditors are concerned about completing their different phase of audits. This time period is known as subsequent period and this period extends till the date of the auditor's report. This period may vary from time to time depending on the situations. In addition to the main duties, it is also the task of the external auditor to conduct other auditing procedures and require adjusting and disclosing the essential financial events and occurrences so as to present a completely transparent report, according to the stated accounting principles.3 Solutions Further Audit Evidences This study is on the Platinum Pokie Club in Western Australia. The evidences in the subsequent period are giving for the external audit firm to analyze their outcomes. Audit evidences are basically the information that auditors use for arriving at a conclusion. Auditors do not examine all the information given because generally many of the information are cumulative in nature that is they occur over a long period of time and may sometimes be analyzed after the date of balance sheet during the subsequent period. Audit evidences are more reliable when they are receiving from external sources that are unbiased. The evidences acquired directly by the auditor are more authentic that information received indirectly. Moreover, information available in a documented form is trusted more than verbally transmitted information.4 The financial controller of the club reported on 5th august, before the auditor’s report, that Mr. Tan, the general manager has made fraudulent expenses claims of $ 40000 over 5 years. The profit and loss account for the five years during which Mr. Tan was working in the club should be properly analyzed. All the evidences supporting all the expenditures should be received and then estimate the actual amount of fraud expenditures. Moreover, the account details of Mr. Tan can be collected with the help of police authorities to see his bank balances. In the second evidence we see Ms. Peters taking legal action against the company and claiming medication and damage charge from the club. For this kind of even, solicitor's advice can be taken, so as to see the likelihood of the customer winning the case and estimate the costs that they would be incurring. The financial controller informed on 18th of August about some serious fire that occurred during a football celebration. For this the insurance money has already been received. But the problem is that the bistro and bar would remain close ... Read More
Cite this document
  • APA
  • MLA
(“Auditing Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.net/other/9268-auditing
(Auditing Essay Example | Topics and Well Written Essays - 1000 Words)
“Auditing Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.net/other/9268-auditing.
  • Cited: 0 times
Comments (0)
Click to create a comment
Various driving factors and inherent benefits for different companies are proving to be incentives for the organisations towards enhanced financial globalisation. The growing interdependence of developed economies on developing and emerging economies is contributing towards increased globalisation (Hamilton & Quinlan, 2008, p.iv).
7 Pages(1750 words)Essay
In the above problem, Bob has breached the confidentiality principle; this is an ethical principle and legal obligation of discretion which require non disclosure of information except to the client and audit committee about the findings or any material uncovered during the course of audit.
3 Pages(750 words)Essay
It also includes profitability and protection of the company's assets. This exhibits that the internal control system should first of all meet the objective of accomplishing the company's operational goals and objectives. The second objective of an internal control system is to prepare a reliable and trustworthy financial reporting system.
3 Pages(750 words)Essay
al public and the accounting profession have had their differences over time on how the auditor should handle the process and what type of information should be reported by auditors to the users of the financial information. The difference between what the public and other
10 Pages(2500 words)Essay
In other words, the procedures may be applied to compare financial information recorded and secured in past, to compare the actual results with initially developed forecasts and targets etc (Internet: allbusiness.com). Indeed, these
3 Pages(750 words)Essay
Auditing is the only alternative for a firm to interpret the outcomes of its previous year’s operations and to assess the current status of affairs. The given case reflects the auditing operations in
8 Pages(2000 words)Essay
The managers present a financial report to the shareholders indicating the performance of the organization within a financial year or within a given period as the shareholders may require. Since the financial statement may
5 Pages(1250 words)Essay
ppointment on the decision to dismiss the current audit firm and believes that since the audit firm was rendering its service for more than 15 years, everyone in the charity was very comfortable with the firm’s auditor. Besides, board members also revealed their concern about
3 Pages(750 words)Essay
For these reasons, the topic will be of research to determine and explore the independence of auditors in terms of the audit quality, non-audit service fees, and non-audit service (Campbell and Houghton, 2005). Non-audit services are professional services provided by a
1 Pages(250 words)Literature review
Auditors then study the internal control system of the organization when they finish identifying risks: this system is made of procedures that help to prevent errors, protect assets, and guarantee compliance with
8 Pages(2000 words)Essay
Let us find you another Essay on topic Auditing for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us