After the audit report has been issued, someone discovers that the auditee had a material, unrecorded bank loan outstanding at year-end. There was no confirmation requested from that bank as the auditors were not aware of the auditee’s relation with that bank. What steps should an auditor should take in this situation?
Answer to relevant QuestionsWhat is the purpose of the auditor’s communication with those charged with governance at the completion of the audit? What are some important matters that this communication should include?What impact can related-party transactions have in some cases of asset valuation?During the current year, Karabakh Ltd. sold off all the heating and air conditioning equipment in one of its buildings because it was being converted from an assembly plant to a warehouse. It was sold to a neighbouring ...What considerations should a successor accountant make in accepting a new engagement? You have recently been hired as a junior accountant for a local PA firm. The firm’s main practice involves reviews, compilations, and tax return preparation for small to medium business clients. The firm’s policy for all ...
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