Audit 2 Chp 2

The final process before the audit opinion is issued needs the following considerations except

• Subsequent event

• Contingent liability

• Substantive strategy

• Finalization

Below are examples of adjusting events except for

• Expropriation of major assets by government

• Different amount of settlement litigation

• Trade debtor's bankrupt

• Disposal for unused asset at lower price of market value

The head or supervisor audit will make ______ before the overall opinion is made.

• Record

• Review

• Recalculation

• Readjust

Below are types of event that occur after the statement of financial position date :

• Subsequent events & Going concern

• Subsequent events & Contingent liabilities

• Contingent liabilities & Going concern

• Going concern & Finalization

An auditor able identify the issues from

• Observe the minutes meeting

• Reading the minutes meeting

• Enquiry the minutes meeting

• Inquiry the minutes meeting

Subsequent events is ________

• significant affect on FS of decision making

• insignificant affect on FS of decision making

• significant affect on FS adjusting events

• insignificant affect on FS non-adjusting events

Following action should be made when subsequent events occur as follow

• Adjusting & Re-adjusting

• Adjusting & Non-adjusting

• Non-Adjusting & Re-adjusting

• Re-adjusting & Nothing

Character in Contingent Liabilities as follow except for

• Potential future payment

• The uncertainty amount of the future payment

• Amount paid on future payment

• The outcome will be resolved by future events

Below is subsequent events and contingent liabilities situation

• Bankruptcy of trade debtor after one month closing date

• Bankruptcy of trade debtor after four months closing date

• Bankruptcy of trade debtor for after six months closing date

• Bankruptcy of trade debtor after nine months closing date

When an auditor should release amendment report

• After annual meeting date

• After financial statement date

• After audit report date

• After management meeting date