Task Five – Audit Conclusion
Before determining the appropriate audit opinion to provide on the client’s financial statements, auditors must assess the client’s subsequent events. These are events that have taken place after the end of the fiscal period, but prior to the completion of the audit and final approval of the financial statements. The auditor must also weigh all the evidence he or she has gathered during the course of the audit to form an opinion on the financial statements.
Prepare a report in Microsoft Word that addresses the following tasks. Your submission should contain:
• Cover page.
• Your instructor will provide you with a list of events that took place after the end of the fiscal year, but prior to the date of the audit report. Assume each event is independent of the others. For each subsequent event: (Please see attachment)
• Indicate what action you believe you, as the auditor, should take given the circumstance as described. (add the answer to the table below)
• Explain why you feel this is the correct action to take. Support your explanation with reference to the auditing standards as appropriate. (add the answer to the table below)
• In order to help build your experience, Melissa Stuart, the Audit Manager, has requested that your group prepare a draft of the audit report for her review. In good form, prepare a recommended draft audit report. Use the results of your analysis on the preceding tasks in the project to form your recommended opinion about the financial statements. (1 page): Please see attachments for the previous 3 tasks for this project to do the analysis (Report Word File)
• Also, prepare a brief (i.e. less than one page) memo addressed to Melissa to explain why you have chosen the opinion in your draft audit report. (Half Page)