Chapter 24 – Completing the Audit

Completing the AuditChapter 24©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 24 - 1Learning Objective 1Design and perform audit testsrelated to presentation anddisclosure audit objectives.©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 24 - 2Presentation and Disclosure Audit Objectives (page 779)Occurrence and rights and obligations:Disclosed events and transactions haveoccurred and pertain to the entity.Completeness:All disclosures that should have beenincluded in the financial statementshave been included.©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 24 - 3Presentation and Disclosure Audit Objectives (page 779)Classification and understandability:Financial information is appropriatelypresented and described and disclosuresare clearly expressed.Accuracy and valuation:Financial and other information aredisclosed fairly and at appropriate amounts.©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 24 - 4Learning Objective 2Conduct a review for contingentliabilities and commitments.©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 24 - 5Contingent LiabilitiesA contingent liability is a potential futureobligation to an outside party for anunknown amount resulting from activitiesthat have already taken place.©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 24 - 6Likelihood of ...