S22: Audit S22: Audit CompletionCompletion

Audit CompletionAudit Completion Audit completion procedures are to ensure that Audit completion procedures are to ensure that

competent, relevant and reasonable audit competent, relevant and reasonable audit evidence was obtained to form an opinion on the evidence was obtained to form an opinion on the appropriate form of audit certificate; appropriate form of audit certificate;

audit evidence has been adequately documented;audit evidence has been adequately documented; audit opinion has been correctly expressed and audit opinion has been correctly expressed and

the audit report conforms the reporting the audit report conforms the reporting standards;standards;

The language of the report is proper and objective;The language of the report is proper and objective; The report has been drafted in such a way as to The report has been drafted in such a way as to

render itself readable to even a layman without render itself readable to even a layman without specialised knowledge of auditing and accounting.specialised knowledge of auditing and accounting.

The report should conform to all reporting The report should conform to all reporting requirements line clarity, brevity, lucidity etc.requirements line clarity, brevity, lucidity etc.

Overall review of the Overall review of the financial statements financial statements

In the overall review of financial In the overall review of financial statements the audit team should statements the audit team should consider whether:consider whether:

the financial statements comply with the financial statements comply with requirements of applicable statutes, rules requirements of applicable statutes, rules and instructions, and all disclosure and instructions, and all disclosure requirements;requirements;

accounting policies conform to the accounting policies conform to the relevant Accounting Standards, Rules and relevant Accounting Standards, Rules and instructions and have been properly instructions and have been properly disclosed, consistently applied and are disclosed, consistently applied and are appropriate to the auditee;appropriate to the auditee;

Overall review of the Overall review of the financial statements – financial statements –

Contd.Contd.In the review the audit team should consider In the review the audit team should consider

whether:whether: the financial statements as a whole are the financial statements as a whole are

consistent with the audit team’s knowledge consistent with the audit team’s knowledge of the auditee and the results of audit of the auditee and the results of audit procedures; procedures;

the manner of disclosure within the financial the manner of disclosure within the financial statements is fair / proper;statements is fair / proper;

there are new factors that may affect the there are new factors that may affect the presentation of, or disclosures in, the presentation of, or disclosures in, the financial statements; andfinancial statements; and

the presentation adopted in the financial the presentation adopted in the financial statements may have been unduly influenced statements may have been unduly influenced by the management's desire to present by the management's desire to present matters in a favourable or unfavourable light.matters in a favourable or unfavourable light.

Review of subsequent Review of subsequent eventsevents

The audit team should consider the effect of The audit team should consider the effect of subsequent events on the financial subsequent events on the financial statements between the period end and the statements between the period end and the date of the audit certificate. date of the audit certificate.

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

Going concernGoing concern

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

Management Management representationsrepresentations

Audit team should obtain written Audit team should obtain written representations from the Accounting Officer or representations from the Accounting Officer or Chief Executive on matters material to the Chief Executive on matters material to the financial statements when those financial statements when those representations are critical to obtaining representations are critical to obtaining competent/relevant and reasonable audit competent/relevant and reasonable audit evidence.evidence.

Audit should also seek to obtain a written Audit should also seek to obtain a written representation acknowledging the Accounting representation acknowledging the Accounting Officer's or Chief Executive’s responsibility for Officer's or Chief Executive’s responsibility for the regularity of transactions.the regularity of transactions.

Summarising the auditSummarising the audit After completing the audit procedures, the After completing the audit procedures, the

audit team should prepare an executive audit team should prepare an executive summary of audit findings. summary of audit findings.

This summary explains the key audit issues, This summary explains the key audit issues, their resolution, agreed adjustments and their resolution, agreed adjustments and concludes on the appropriate form of audit concludes on the appropriate form of audit certificate. certificate.

The summary is reviewed and signed by the The summary is reviewed and signed by the Audit Officer, Group Officer (supervising Audit Officer, Group Officer (supervising the audit) and Accountant General.the audit) and Accountant General.

Where the proposed audit certificate will Where the proposed audit certificate will be other than unqualified, the full rationale be other than unqualified, the full rationale should be given in the executive summary. should be given in the executive summary.

Executive summaryExecutive summaryExecutive summary should include Executive summary should include a summary of the auditee's operations and purpose;a summary of the auditee's operations and purpose; a summary of the regularity framework of the auditee;a summary of the regularity framework of the auditee; a summary of the audit approach and the balance a summary of the audit approach and the balance

between tests of controls and substantive procedures;between tests of controls and substantive procedures; a summary of the key risks identified;a summary of the key risks identified; a commentary on the expenditure and income of the a commentary on the expenditure and income of the

auditee;auditee; a commentary on key balances; a commentary on key balances; a commentary on the accounting policies and a commentary on the accounting policies and

significant account areas;significant account areas; a summary of the results of audit procedures;a summary of the results of audit procedures; outstanding matters, if any;outstanding matters, if any; a summary of matters carried forward to the next a summary of matters carried forward to the next

year's audit;year's audit; a conclusion on the appropriate form of audit a conclusion on the appropriate form of audit

certificate.certificate.