The final stage of an audit includes an overall review of the financial statements. Explain the procedures that the auditor should adopt for the final review

Before forming an opinion on the financial statements and deciding on the wording of the audit report, the auditor should conduct an overall review of statements
Audit procedures for final review

• Accounting policies
Consider if they;
– Are in accordance with generally accepted accounting principles and comply with fundamental accounting concepts as going concern, accruals, consistency and prudence.
– Are acceptable to particular circumstances
– Are commonly adopted in a particular industry
– Are consistently applied over the years
– Are consistently applied throughout the enterprise
– Comply with all relevant accounting standards

• Circumstances of enterprise
– Consider if the accounts are consistent with the auditor‘s knowledge of underlying circumstances of the business and information.
– Review information in the accounts to determine if there are any abnormalities or inconsistencies

• Presentation and disclosure
– Consider in any conclusion that a reader might draw from his reading of the accounts would be justified and is consistent with the circumstances of the enterprise
– Consider if the substance of any transactions or activities is disclosed and not merely their form
– Consider if the presentation might have been unduly influenced by management‘s desire to present facts in a favourable light
– Consider if the review has indicated that there are few factors which might alter the policies used or the presentation of the accounts, and special attention needs to be paid to going concern difficulties.

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