The final review stage of the audit involves taking an overall view of the financial statements and assessing how fairly they reflect the underlying economic events and conditions that occurred in the entity. This exercise involves pulling together difference aspects of the text material that help auditors take this overall integrated view, and considering the case of a real company’s financial statements.

Required:
a. Obtain an example of a current set of financial statements from the data base of public company documents available at SEDAR.com. For each of the items included in the entity’s business processes in Exhibit 6–13, identify which financial statement it will appear in and all the other financial statement items to which it is related.

b. Using the file index system illustration in Appendix 11C (available on Connect), provide an index of what a typical audit file for your example company financial statements would be likely to contain.
c. XBRL is an Internet-based technology for presenting financial data on Web pages and exchanging it over the Internet with other users’ systems. Companies are increasingly being required to provide their financial statements in XBRL format. Information on the underlying structure of XBRL and how it works can be found at the website XBRL.org. Further research can be done at other websites for reference: for example, edgr.com (EDGAR online). For the financial statement items you identified in (a) above, describe how each data item could be defined/tagged in XBRL to appear in the financial statements. If the financial data item has been audited, can XBRL allow the auditor’s assurance to be communicated to users at the same time as the data?How?

EXHIBIT 6-13 Initial Risk Assessment Risk assessment Likelihood of occurence Probable Medium High High Possible Low Me High Unlikely Low Low Medium Insignificant Moderate Significant Magnitude of impact