CHAPTER 12

COMPLETING AND
REPORTING ON THE
AUDIT
Prepared by:
Daniella Juri
RMIT Uni!er"i#y
LEARNING O$JECTI%E&
After studying this chapter you should be
able to:
1' Di"u"" #(e pr)edure" per*)r+ed par# )* #(e en,a,e+en# -rap.up inludin,
,a#(erin, and e!alua#in, audi# e!idene
2' Di"u"" #(e )n"idera#i)n" -(en a""e""in, #(e ,)in, )nern a""u+p#i)n u"ed
in #(e prepara#i)n )* #(e /nanial rep)r#
0' A""e"" #(e #-) #ype" )* "ub"e1uen# e!en#" #) de#er+ine -(a# e2e# #(ey (a!e
)n #(e /nanial rep)r# 3i* any4
5' E!alua#e +i""#a#e+en#" and e6plain #(e di2erene be#-een 1uan#i#a#i!e and
1uali#a#i!e )n"idera#i)n" -(en e!alua#in, #(e +i""#a#e+en#"
7' E!alua#e )nlu"i)n" )b#ained durin, #(e per*)r+ane )* #(e audi# and e6plain
()- #(e"e )nlu"i)n" lin8 #) #(e )!erall )pini)n *)r+ed )n #(e /nanial rep)r#
9' Di"u"" #(e )+p)nen#" )* #(e audi# rep)r#
:' Di2eren#ia#e #(e #ype" )* +)di/a#i)n" #) an audi# rep)r#
;' Di"u"" -(y C)rp)ra#i)n" Ae brea(e" are i+p)r#an# #) under"#and
<' Di"u"" -(a# rep)r#in, i" re1uired #) +ana,e+en# and #()"e (ar,ed -i#(
,)!ernane
ENGAGEMENT =RAP.UP

Audi#)r /nali"e" any )pen i#e+" be*)re

i""uin, audi# rep)r#

Any re+ainin, audi# pr)edure" are a""i,ned>

due da#e "e# *)r )+ple#i)n

Audi# par#ner de#er+ine" i* pr)edure"

e6eu#ed a" planned and all rele!an# +a##er"
(a!e been )n"idered appr)pria#ely
ENGAGEMENT =RAP.UP
AREAS COVERED DURIN !RA"#U"
1' Re!ie- planned pr)edure" *)r pr)per and
)+ple#e e6eu#i)n
2' De#er+ine all nee""ary +a##er" appr)pria#ely
)n"idered
0' Re!i"i# )pen re!ie- n)#e"> ?#).d)@ i#e+">
in)+ple#e pr)edure" A a##en#i)n neededB
Re")l!e i#e+"
5' Re+)!e all unnee""ary d)u+en#a#i)n> dra*#"
and re!ie- n)#e" *r)+ re!ie- /le

A&A 20CD I&A 20C> A&A 017D I&A 017> A&A 00CD I&A 00C
re1uire+en#" *)r de!el)pin,> al#erin, and "#)rin, audi#
d)u+en#a#i)n
ENGAGEMENT =RAP.UP
AREAS COVERED DURIN !RA"#U"
7' E)r +ul#i.l)a#i)n audi#"> )b#ain d)u+en#" *r)+
)#(er audi#)r" a" re1uired
9' Re+)!e d)u+en#" n)# re1uired #) "upp)r#
)pini)n
:' C)n"ider +a#eriali#y le!el u"ed in audi# Ai" i# "#ill
appr)pria#e ,i!en *a#)r" )r )ndi#i)n" *)und
durin, audi#B

E',' "i,ni/an# (an,e in an#iipa#ed )pera#in, re"ul#">

nu+er)u" une6pe#ed +i""#a#e+en#"
ENGAGEMENT =RAP.UP
AREAS COVERED DURIN !RA"#U"
;' Re)n"ider a""e""+en#" )* in#ernal )n#r)l a#
en#i#y le!el and ri"8 )* *raud ,i!en re"ul#" )*
)n#r)l #e"#"> +i""#a#e+en#" di")!ered durin,
audi#

Pr)ble+" +ay be #)) per!a"i!e #) )n#inue -i#( audi#

<' Re!i"i# plannin, d)u+en#a#i)n #) de#er+ine i* all
+a##er" in plan (a!e been addre""ed
1C'Per*)r+ "ub"e1uen# e!en#" pr)edure"

Iden#i*y e!en#" )urrin, be#-een year.end and da#e )*

audi# rep)r# #(a# +i,(# re1uire adFu"#+en# )r di"l)"ure
ENGAGEMENT =RAP.UP
AUDI$OR %US$ DECIDE I& $'ERE IS
SUFFICIENT APPROPRIATE AUDI$ EVIDENCE
$O SU""OR$ AUDI$ O"INION # CONSIDER:
Ma#eriali#y )* +i""#a#e+en#"
Mana,e+en# re"p)n"e"
Pre!i)u" e6periene
Re"ul#" )* audi# pr)edure" per*)r+ed
Guali#y )* in*)r+a#i)n )b#ained
Per"ua"i!ene"" )* #(e audi# e!idene
=(e#(er e!idene )b#ained "upp)r#" )r )n#radi#" #(e re"ul#" )*
#(e ri"8 a""e""+en# pr)edure"
ENGAGEMENT =RAP.UP
AUDI$OR EVA(UA$ES AUDI$ EVIDENCE $O
DECIDE !'E$'ER:
1' T(e a""e""+en#" )* #(e ri"8 )* +a#erial
+i""#a#e+en# a# #(e a""er#i)n le!el are appr)pria#e>
and
2' &uHien# e!idene (a" been )b#ained #) redue #(e
ri"8 )* +a#erial +i""#a#e+en# in #(e /nanial rep)r#
#) an aep#ably l)- le!el
AUDI$ $EA% DISCUSSES "RORESS
$'ROU'OU$ ENAE%EN$) %ODI&IES
"(ANNED "ROCEDURES $O RE&(EC$ C'ANES
$O ORIINA( RIS* ASSESS%EN$S
ENGAGEMENT =RAP.UP
!'EN %ISS$A$E%EN$S OR CON$RO(
DEVIA$IONS &OUND IN "(ANNED
"ROCEDURES) CONSIDER:

Rea")n *)r #(e +i""#a#e+en# )r de!ia#i)n

I+pa# )n ri"8 a""e""+en#" and )#(er planned

pr)edure"

Need #) +)di*y )r per*)r+ *ur#(er audi# pr)edure"

Need #) re!i"e +a#eriali#y le!el due #):

Ne- in*)r+a#i)n> e',' lien# )b#ained ne- l)an -i#(

+)re re"#ri#i!e deb# )!enan#"

C(an,e in audi#)r@" under"#andin, )* #(e en#i#y and i#"

)pera#i)n"

Ne- iru+"#ane"> e',' "i,ni/an#ly l)-er pr)/#

GOING CONCERN
OIN CONCERN ASSU%"$ION UNDER"INS
ACCOUN$IN ON $'E +ASIS $'A$ $'E EN$I$,
!I(( +E A+(E $O REA(ISE I$S ASSE$S AND
DISC'ARE I$S (IA+I(I$IES IN $'E NOR%A(
COURSE O& +USINESS

Mana,e+en# +u"# a""e"" ,)in, )nernD

A' On ba"i" )* 12 +)n#(" *r)+ dire#)r"@ rep)r#
$' U"e in*)r+a#i)n a!ailable a# #i+e )* a""e""+en#
C' Jud,e+en#" a2e#ed by "iIe and )+ple6i#y )*
en#i#y> na#ure and )ndi#i)n )* i#" bu"ine""> de,ree
#) -(i( bu"ine"" a2e#ed by e6#ernal *a#)r"
JUDGING MANAGEMENT@& GOING
CONCERN A&&UMPTION&
GOING CONCERN
Audi#)r" )n"ider" rea")nablene"" )*
+ana,e+en#@" a""e""+en# )* ,)in, )nern
and -(e#(er di"l)"ure" are re1uired in /nanial
rep)r# 3A&A 7:CD I&A 7:C4

C)n"ider rea")nablene"" )* +ana,e+en#@"

pr)edure" #) iden#i*y ,)in, )nern i""ue" and
+i#i,a#in, iru+"#ane"

I* ,)in, )nern i" n)# appr)pria#e> +ana,e+en#

"()uld prepare /nanial rep)r# )n li1uida#i)n ba"i"
&U$&EGUENT E%ENT&
&INANCIA( RE"OR$ IS +ASED ON
EVEN$S U" $O) AND CONDI$IONS
E-IS$IN A$) ,EAR#END
A.$hree other /ey dates:

Da#e /nanial rep)r# appr)!ed by +ana,e+en#

Da#e )* audi#)r@" rep)r#

Da#e /nanial rep)r# publily relea"ed

+. Subse0uent e1ents:

E!en#" #(a# )ur be#-een year.end and #(e da#e

)* audi#)r@" rep)r#> and *a#" di")!ered a*#er
da#e )* audi#)r@" rep)r#
&U$&EGUENT E%ENT&
$,"E 2 SU+SE3UEN$ EVEN$S

E!en#" #(a# pr)!ide addi#i)nal e!idene -i#(

re"pe# #) )ndi#i)n" #(a# e4isted a# year.
end
$,"E 5 SU+SE3UEN$ EVEN$S

E!en#" #(a# pr)!ide e!idene -i#( re"pe# #)

)ndi#i)n" #(a# de!el)ped subse0uent #)
year.end
&ee b)#( AA&$ 11C 3IA& 1C4 and A&A 79CD I&A 79C
*)r ,uidane )n rep)r#in, and audi#in, #(e"e e!en#"
&U$&EGUENT E%ENT&
$,"E 2 SU+SE3UEN$ EVEN$S

Can a2e# e"#i+a#e" in /nanial rep)r#> )r india#e

#(a# ,)in, )nern a""u+p#i)n i" n)# appr)pria#e

A)un#in, #rea#+en#: ad6ust 7nancial report *)r

#(e e2e# )* #(e"e e!en#"> -(ere +a#erial

E6a+ple":

$an8rup#y )* u"#)+er a*#er year.end -(i( -)uld be

)n"idered -(en e!alua#in, pr)!i"i)n *)r d)ub#*ul deb#"

A+)un# reei!ed *)r in"urane lai+ in ne,)#ia#i)n a#

year.end

De#eri)ra#i)n in )pera#in, re"ul#" a*#er year.end #(a#

+ean" ,)in, )nern n)# appr)pria#e
&U$&EGUENT E%ENT&
C(an,e #(e a+)un#"
and p)""ibly #(e
di"l)"ure" in #(e
dra*# /nanial rep)r#
and )n"ider i+pa#
)n audi# rep)r#
=i#(dra-
audi# rep)r#>
(an,e
/nanial
rep)r# and
a+end audi#
rep)r#> rei""ue
N) A#i)n
re1uired
Directors adopt
and sign
financial report
Audited financial
report and audit
report signed
Financial report is
authorised for issue by the
directors
&U$&EGUENT E%ENT&
$,"E 2 SU+SE3UEN$ EVEN$S
I* #(e audi#)r be)+e" a-are )* Type 1 e!en#
a*#er #(e da#e )* #(e audi#)r@" rep)r# $UT be*)re
#(e /nanial rep)r# i" i""ued> #(e audi#)r:
1' C)n"ider" -(e#(er #(e /nanial rep)r# need"
(an,in,
2' Di"u""e" #(e +a##er -i#( #(e lien#
0' Ta8e" a#i)n appr)pria#e in #(e iru+"#ane
&U$&EGUENT E%ENT&
$,"E 5 SU+SE3UEN$ EVEN$S

D) n)# re"ul# in (an,e" #) a+)un#" in #(e

/nanial rep)r#

Mi,(# be ") "i,ni/an# #) re1uire disclosure

D) n)# re1uire a)un#" #) be adFu"#ed

E6a+ple":

Unin"ured l)"" )* a""e#" due #) /re> J))d>

"ub"e1uen# #) year.end

Pur(a"e )* a bu"ine""> i""uane )* "(are" )r deb#

"ub"e1uen# #) year.end
&U$&EGUENT E%ENT&
C(an,e #(e
di"l)"ure" in #(e
dra*# /nanial
rep)r#
=i#(dra-
audi# rep)r#>
(an,e
/nanial
rep)r# and
a+end audi#
rep)r#> rei""ue
N) A#i)n
re1uired
Directors adopt
and sign
financial report
Audited financial
report and audit
report signed
Re"ul#" #) be
upda#ed by
lien#
Financial report is
authorised for issue by the
directors
&U$.PRIME CRI&I&
&U$&EGUENT E%ENT&
AUDI$OR8S RES"ONSI+I(I$IES &OR
+O$' $,"ES

Pri)r #) "i,nin, audi# rep)r#> audi#)r )+ple#e" pr)edure"

#) iden#i*y any e!en#" p)"# year.end #(a# +i,(# re1uire
adFu"#+en# )r di"l)"ure in a)un#"

A*#er "i,nin, audi# rep)r#> i* audi#)r be)+e" a-are )* a

*a# #(a# +ay +a#erially a2e# /nanial rep)r#:
C)n"ider i* /nanial rep)r# need" (an,in,
Di"u"" +a##er -i#( lien#
Ta8e a#i)n appr)pria#e in iru+"#ane"
I* lien# -ill n)# adFu"# /nanial rep)r# -(ere audi#)r belie!e" i#
"()uld be (an,ed> )n"ider i""uin, 1uali/ed )r ad!er"e
)pini)n
I* /nanial rep)r# i""ued> audi#)r +i,(# -i#(dra- audi# rep)r#>
pre!en# reliane )n rep)r#
&U$&EGUENT E%ENT&
AUDI$ "ROCEDURES:
Audi#)r i" )nerned )nly -i#( "i,ni/an# e!en#"
)urrin, "ub"e1uen# #) balane "(ee# da#e #(a#
+i,(# re1uire adFu"#+en#> di"l)"ure in a)un#"

Na#ure )* pr)edure" depend" )n:

Audi#)r@" 8n)-led,e )* lien# iru+"#ane">
Mana,e+en# pr)edure" #) iden#i*y e!en#"
%)la#ili#y and "#ren,#( )* lien#@" bu"ine""
Audi#)r@" under"#andin, and e!alua#i)n )* ")ure" )* in*)r+a#i)n *)r
"i,ni/an# a)un#"
Pre"ene )* 8n)-n pr)ble+" inrea"in, lien# e6p)"ure #) "i,ni/an#
(an,e" in /nanial p)"i#i)n
&U$&EGUENT E%ENT&
AUDI$ "ROCEDURES:

Gain under"#andin, )*> and +a8e e!alua#i)n )*>

+ana,e+en# pr)e""e" #) deal -i#( "ub"e1uen#
e!en#"

Read b)ard +ee#in, +inu#e"

Analy"e la#e"# in#eri+ re"ul#"> bud,e#"> a)un#in,

dei"i)n"> l)an repay+en#" and )+pliane

E6#end analy#ial pr)edure" #) audi# rep)r# da#e

En1uirie" )* le,al )un"el> b)ard +e+ber">

+ana,e+en#

Ob#ain -ri##en repre"en#a#i)n" A&A 7;CD I&A 7;C

=HO NEGOTIATE& AUDIT
ADJU&TMENT&
MI&&TATEMENT&
%ISS$A$E%EN$S are di2erene"
be#-een a rep)r#ed /nanial rep)r# i#e+
and #(e )rre# rep)r#in, a" re1uired by
"#andard"

Di2erene" )uld rela#e #) i#e+@" a+)un#>

la""i/a#i)n> pre"en#a#i)n )r di"l)"ure

Mi""#a#e+en#" an be unin#en#i)nal 3err)r4 )r

due #) *raud

Audi#)r e!alua#e" -(e#(er +i""#a#e+en#"

need #) be )rre#ed
MI&&TATEMENT&
&AC$ORS $O CONSIDER !'EN
EVA(UA$IN:

Ri"8 )* addi#i)nal +i""#a#e+en#" re+ainin,

unde#e#ed

E2e#" )* iden#i/ed +i""#a#e+en#" )n lien#@"

)+pliane -i#( deb# )!enan#"

=(e#(er i# i" an err)r )r Fud,e+en#al

+i""#a#e+en#

Turnar)und e2e# )n urren# year@" /nanial

rep)r# )* +i""#a#e+en#" iden#i/ed in pre!i)u"
year

Li8eli())d #(a# reurrin, di2erene" -ill be +)re

+a#erial in *u#ure

&en"i#i!i#y )* iru+"#ane"> e',' *raud> ille,al

a#"
MI&&TATEMENT&
&AC$ORS $O CONSIDER !'EN
EVA(UA$IN:

&i,ni/ane )* /nanial rep)r# ele+en#

a2e#ed by +i""#a#e+en#

&i,ni/ane )* +i""#a#e+en#" rela#i!e #)

8n)-n u"er need"

E2e# )* +i""#a#e+en#" )n "e,+en#

in*)r+a#i)n> )r )#(er i+p)r#an# p)r#i)n )*
lien#@" bu"ine""

E2e#" )* )2"e##in, +i""#a#e+en#" in di2eren#

/nanial rep)r# ap#i)n"> e',' a"(>
prepay+en#"
MI&&TATEMENT&
2. Current year 9isstate9ents

Audi#)r prepare" "(edule )* un)rre#ed di2erene"

in )rder #) a""e"" )!erall e2e# )n /nanial rep)r# and
)n indi!idual i#e+" )r balane"

C)n"ider e2e# )n *u#ure year"@ rep)r#"

5. "rior year 9isstate9ents

May be i++a#erial in pre!i)u" year> )uld be +a#erial

#(i" year 3A&A 57CD I&A 57C4

C)n"ider p)#en#ial #urn ar)und

. e',' under"#a#in, payable" la"# year due #) u#.)2 err)r #urn".
ar)und #(i" year
MI&&TATEMENT&
Consider both 0uantitati1e and
0ualitati1e aspects of 9isstate9ents

Guali#a#i!e e6a+ple":

A2e#" )+pliane -i#( re,ula#)ry re1uire+en#" )r deb#

)!enan#"

A2e#" lien#@" )+pliane -i#( )n#ra#ual

re1uire+en#" )* )pera#in, and )#(er a,ree+en#"

A2e#" +ana,e+en#@" "a#i"*a#i)n )* re1uire+en#" *)r

a-ard )* b)nu"e" and inen#i!e )+pen"a#i)n

C(an,e" rep)r#ed pr)/# in#) l)""

C(an,e" indi!idual line i#e+" by +a#erial a+)un#

C(an,e" 8ey ra#i)" +)ni#)red by analy"#"

E%ALUATING
CONCLU&ION&> EORMING
OPINION
$O &OR% AN O"INION:
1' E!alua#e audi# e!idene )b#ained
2' E!alua#e e2e#" )* unre)rded
+i""#a#e+en#" and 1uali#a#i!e a"pe#" )*
en#i#y@" a)un#in,
0' E!alua#e -(e#(er /nanial rep)r# pr)perly
prepared and pre"en#ed a)rdin, #)
"#andard"
5' E!alua#e *air pre"en#a#i)n )* /nanial rep)r#
COMPONENT& OE AUDIT
REPORT
&OR%A$ &OR AUDI$ RE"OR$ ON
&INANCIA( RE"OR$ OVERNED +,
ASA :;;< ISA :;;
1' Ti#le
2' Addre""ee
0' In#r)du#)ry para,rap(> iden#i*yin, en#i#y and i#"
rep)r#> "u++ary )* "#a#e+en#" audi#ed and #(eir
da#e> and re*er" #) "u++ary )* a)un#in, p)liie"
5' Mana,e+en#@" re"p)n"ibili#y *)r #(e /nanial rep)r#
E"#abli"(in, and +ain#ainin, in#ernal )n#r)l"
Eair pre"en#a#i)n )* /nanial rep)r# *ree *r)+ +a#erial
+i""#a#e+en#
A)un#in, p)liie" and e"#i+a#e"
COMPONENT& OE AUDIT
REPORT
&OR%A$ O& AUDI$ RE"OR$
7' Audi#)r@" re"p)n"ibili#y *)r #(e /nanial rep)r#
E6pre"" )pini)n ba"ed )n audi#
C)+pliane -i#( audi#in, "#andard"
De"ribe audi#
Audi# e!idene i" "uHien# and appr)pria#e
9' Audi#)r@" )pini)n )n -(e#(er #(e /nanial rep)r#
,i!e" a #rue and *air !ie-> in a)rdane -i#(
/nanial rep)r#in, *ra+e-)r8
:' O#(er +a##er"> e',' independene "#a#e+en#
;' O#(er rep)r#in, re"p)n"ibili#ie"> e',' re+unera#i)n
rep)r#
COMPONENT& OE AUDIT
REPORT
&OR%A$ O& AUDI$ RE"OR$:
<' Audi#)r@" "i,na#ure> ei#(er /r+ na+e> )r per")nal
na+e dependin, )n le,i"la#i!e re1uire+en#"
1C'Da#e )* rep)r#
11'Audi#)r@" addre""
MODIEICATION& TO AUDIT
REPORT
Auditor 9ay need to 9odify audit
opinion to e4press a 0uali7ed)
ad1erse or disclai9er of opinion

A&A :C7D I&A :C7>

Or add an e9phasis of 9atter or
other 9atter paragraph

A&A :C9D I&A :C9

MODIEICATION& TO AUDIT
REPORT
CONDI$IONS (EADIN $O %ODI&IED
AUDI$ RE"OR$:
1' &i,ni/an# uner#ain#y e6i"#" #(a# "()uld be
br)u,(# #) #(e reader@" a##en#i)n
2' A li+i#a#i)n )* ")pe )* #(e en,a,e+en#
e6i"#"> )r
0' T(ere i" a di"a,ree+en# -i#( #()"e (ar,ed
-i#( ,)!ernane re,ardin, #(e applia#i)n )*
a)un#in, p)liie" )r #(e ade1uay )*
/nanial rep)r# di"l)"ure
MODIEICATION& TO AUDIT
REPORT
E%"'ASIS O& %A$$ER

D)e" n)# a2e# audi#)r@" )pini)n

Applie" -(en re")lu#i)n )* a +a##er i"

dependen# )n *u#ure a#i)n" )r e!en#" n)#
under dire# )n#r)l )* #(e en#i#y> bu# #(a# +ay
a2e# #(e /nanial rep)r#> and #(e +a##er i"
disclosed in the 7nancial report

E',' ,)in, )nern uner#ain#y

C)uld al") apply i* in*)r+a#i)n in annual

rep)r# i" +a#erially in)n"i"#en# -i#( /nanial
rep)r#
MODIEICATION& TO AUDIT
REPORT
(I%I$A$ION O& SCO"E

C)uld re"ul# *r)+ audi#)r@" inabili#y #) per*)r+

pr)edure" )r an i+p)"i#i)n by #(e en#i#y

Audi#)r +ay (a!e #i+in, pr)ble+"

En#i#y@" re)rd" )uld be da+a,ed )r n)#

)+ple#e

Ae"" )uld be re"#ri#ed #) l)a#i)n"> 8ey

per")nnel

I* pr)ble+ i" +a#erial> i""ue 1uali/ed )pini)n

I* pr)ble+ i" per!a"i!e> i""ue di"lai+er )* )pini)n

MODIEICATION& TO AUDIT
REPORT
DISAREE%EN$ !I$' $'OSE
C'ARED !I$' OVERNANCE)
REARDIN:

A)un#in, p)liie"

Ade1uay )* di"l)"ure" in /nanial rep)r#

I* +a#erial> i""ue 1uali/ed )pini)n

I* per!a"i!e> i""ue ad!er"e )pini)n

MODIEICATION& TO AUDIT
REPORT
OTHER MATTER&
COR"ORA$IONS AC$ 5;;2 +REAC'ES

Audi#)r re1uired #) rep)r# )n#ra!en#i)n" #) AI&C

-i#(in 2; day" )* an e!en# 3"011 C)rp A#4

Rep)r#in, +u"# be in a #i+ely +anner and audi#)r

"()uld n)# -ai# un#il #(e end )* #(e en,a,e+en#
#) rep)r# #(e +a##er

E6a+ple" )* "u"pe#ed )n#ra!en#i)n" inlude:

In")l!en# #radin,
$rea(e" )* a)un#in, "#andard"
Eraud by )Her" )r e+pl)yee" )* #(e lien#
C)n#inual la#e l)d,e+en# )r n)n.l)d,e+en# )* annual
"#a#e+en#" and /nanial rep)r#"
CO%%UNICA$ION !I$'
%ANAE%EN$ AND $'OSE
C'ARED !I$' OVERNANCE
CO%%UNICA$ION !I$'
%ANAE%EN$ AND $'OSE C'ARED
!I$' OVERNANCE =ASA 5>;?
C)++unia#e +a##er" )* ,)!ernane in#ere"#
#(a# )+e #) audi#)r" a##en#i)n in audi# 3)!ered
by "e!eral audi#in, "#andard"4

Eraud 3A&A 25C4

N)n )+pliane -i#( la-" and re,ula#i)n" 3A&A 27C4

CO%%UNICA$ION !I$'
%ANAE%EN$ AND $'OSE
C'ARED !I$' OVERNANCE
CO%%UNICA$ION !I$'
%ANAE%EN$ AND $'OSE C'ARED
!I$' OVERNANCE
C)++unia#e +a##er" )* ,)!ernane in#ere"# #(a# )+e #) audi#)r"
a##en#i)n in audi#:
General appr)a( and )!erall ")pe )* audi#> li+i#a#i)n"
&ele#i)n )*> (an,e" in> a)un#in, p)lie" -i#( +a#erial e2e# )n /nanial
rep)r#
P)#en#ial e2e# )n /nanial rep)r# )* any +a#erial ri"8" and e6p)"ure"
Mi""#a#e+en#" -i#( +a#erial e2e#
Ma#erial uner#ain#ie" rela#in, #) ,)in, )nern
Di"a,ree+en#" -i#( +ana,e+en#
E6pe#ed +)di/a#i)n" #) #(e audi# rep)r#
Pra#ial diHul#ie" in per*)r+in, audi#
Irre,ulari#ie"> "u"pe#ed n)n)+pliane -i#( la-"
C)++en#" )n de"i,n and )pera#i)n )* in#ernal )n#r)l"> "u,,e"#i)n" *)r
i+pr)!e+en#" 3al") in +ana,e+en# le##er4
Any )#(er +a##er" a" a,reed
DOCUMENTATION
CON&IDERATION&

Audi#)r re#ain" a )py )* )++unia#i)n in

-)r8in, paper" -i#( any re"p)n"e" *r)+
+ana,e+en# and #(eir in#ended a#i)n"'

Dependin, )n #(e na#ure> "en"i#i!i#y and

"i,ni/ane )* #(e +a##er" )++unia#ed> #(e
audi#)r )uld )n/r+ )ral )++unia#i)n in
-ri#in,> #) pre!en# di"pu#e" a# a la#er da#e'

Audi#)r "()uld )++unia#e -ea8ne""e" in

in#ernal )n#r)l" #) +ana,e+en# 3)r #()"e
(ar,ed -i#( ,)!ernane4 and "()uld be
)++unia#ed in -ri#in,'
&UMMARK
After studying this chapter you should be
able to:
1' Di"u"" #(e pr)edure" per*)r+ed par# )* #(e en,a,e+en# -rap.up inludin,
,a#(erin, and e!alua#in, audi# e!idene
2' Di"u"" #(e )n"idera#i)n" -(en a""e""in, #(e ,)in, )nern a""u+p#i)n u"ed
in #(e prepara#i)n )* #(e /nanial rep)r#
0' A""e"" #(e #-) #ype" )* "ub"e1uen# e!en#" #) de#er+ine -(a# e2e# #(ey (a!e
)n #(e /nanial rep)r# 3i* any4
5' E!alua#e +i""#a#e+en#" and e6plain #(e di2erene be#-een 1uan#i#a#i!e and
1uali#a#i!e )n"idera#i)n" -(en e!alua#in, #(e +i""#a#e+en#"
7' E!alua#e )nlu"i)n" )b#ained durin, #(e per*)r+ane )* #(e audi# and e6plain
()- #(e"e )nlu"i)n" lin8 #) #(e )!erall )pini)n *)r+ed )n #(e /nanial rep)r#
9' Di"u"" #(e )+p)nen#" )* #(e audi# rep)r#
:' Di2eren#ia#e #(e #ype" )* +)di/a#i)n" #) an audi# rep)r#
;' Di"u"" -(y C)rp)ra#i)n" Ae brea(e" are i+p)r#an# #) under"#and
<' Di"u"" -(a# rep)r#in, i" re1uired #) +ana,e+en# and #()"e (ar,ed -i#(
,)!ernane