Title AUDIT QP R SOLUTION ( new ) 4.pdf ✅

DHEERA TEST SERIES [4] The auditor shall perform the procedures required above so that they cover the period from the date of the financial statements to the date of the auditor’s report, or as near as practicable thereto. The auditor shall take into account the auditor’s risk assessment in determining the nature and extent of such audit procedures, which shall include the following: - (i) Obtaining an understanding of any procedures management has established to ensure that subsequent events are identified. (ii) Inquiring of management and, where appropriate, those charged with governance as to whether any subsequent events have occurred which might affect the FS. (iii) Reading minutes, if any, of the meetings, of the entity’s owners, management and those charged with governance, that have been held after the date of the financial statements and inquiring about matters discussed at any such meetings for which minutes are not yet available. (iv) Reading the entity’s latest subsequent interim financial statements, if any. Award marks only if all 4 points Including the highlighted technical points are written correctly for each question. No marks for generic or Vague content. COMMON PITFALLS: Students may get confused in point iii & iv since both the points start with the word ‘Reading' yet completely different. Students might miss out ‘inquiring about matters discussed at any such meetings for which minutes are not yet available’ from point iii. Answer No 3: As per SA 265, “Communicating Deficiencies in Internal Control to Those Charged with Governance and Management”, while pointing out significant deficiencies in internal control, auditor has not only to communicate significant deficiencies giving their description but also explain the potential effects and sufficient information to those charged with governance and management to understand context of communication. ——> 1M ——> 1M ——> 1M ——> 1M ——> 1M ——> 1M ——> 0.5M · · · · · ·