Audit Completion

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Audit Completion
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Session objectives

• To explain the audit completion procedures
• To outline the elements of executive summary

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Audit Completion

• Audit completion procedures are to ensure that
• competent, relevant and reasonable audit evidence
  was obtained to form an opinion on the
  appropriate form of audit certificate
• audit evidence has been adequately documented
• audit opinion has been correctly expressed and
  the audit report conforms the reporting
  standards
• The language of the report is proper and
  objective
• The report has been drafted in such a way as to
  render itself readable to even a layman without
  specialised knowledge of auditing and accounting.
• The report should conform to all reporting
  requirements line clarity, brevity, lucidity etc.

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Overall review of the financial statements

• In the overall review of financial statements the
  audit team should consider whether
• the financial statements comply with requirements
  of applicable statutes, rules and instructions,
  and all disclosure requirements
• accounting policies conform to the relevant
  Accounting Standards, Rules and instructions and
  have been properly disclosed, consistently
  applied and are appropriate to the auditee

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Overall review of the financial statements
Contd.

• In the review the audit team should consider
  whether
• the financial statements as a whole are
  consistent with the audit teams knowledge of
  the auditee and the results of audit procedures
  
• the manner of disclosure within the financial
  statements is fair / proper
• there are new factors that may affect the
  presentation of, or disclosures in, the financial
  statements and
• the presentation adopted in the financial
  statements may have been unduly influenced by the
  management's desire to present matters in a
  favourable or unfavourable light.

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Review of subsequent events

• The audit team should consider the effect of
  subsequent events on the financial statements
  between the period end and the date of the audit
  certificate.
• The audit team should perform audit procedures to
  obtain assurance that all material subsequent
  events up to the date of the audit certificate
  have been identified and that appropriate
  adjustments or disclosures have been made in the
  financial statements.

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Going concern

• At the completion stage of audit, the audit team
  should ensure that it has considered the
  auditees ability to continue as a going concern
  in the foreseeable future.

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Management representations

• Audit team should obtain written representations
  from the Accounting Officer or Chief Executive on
  matters material to the financial statements when
  those representations are critical to obtaining
  competent/relevant and reasonable audit evidence.
• Audit should also seek to obtain a written
  representation acknowledging the Accounting
  Officer's or Chief Executives responsibility for
  the regularity of transactions.

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Summarising the audit

• After completing the audit procedures, the audit
  team should prepare an executive summary of audit
  findings.
• This summary explains the key audit issues, their
  resolution, agreed adjustments and concludes on
  the appropriate form of audit certificate.
• The summary is reviewed and signed by the Audit
  Officer, Group Officer (supervising the audit)
  and Accountant General.
• Where the proposed audit certificate will be
  other than unqualified, the full rationale should
  be given in the executive summary.

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Executive summary

• Executive summary should include
• a summary of the auditee's operations and
  purpose
• a summary of the regularity framework of the
  auditee
• a summary of the audit approach and the balance
  between tests of controls and substantive
  procedures
• a summary of the key risks identified
• a commentary on the expenditure and income of the
  auditee
• a commentary on key balances
• a commentary on the accounting policies and
  significant account areas
• a summary of the results of audit procedures
• outstanding matters, if any
• a summary of matters carried forward to the next
  year's audit
• a conclusion on the appropriate form of audit
  certificate.