The auditor is responsible for planning, collecting audit evidence and issuing the audit reports. For financial statement audits, the auditor is usually someone with a qualification in financial accounting and who is approved by a professional body or laws to practice auditing.
The precondition to audit are conditions in which auditors must satisfy themselves that they are complied with before accepting the audit engagement.
There ate two preconditions for an audit:
First, the audited client must use the acceptable financial reporting framework in the preparation of its financial statements. An acceptable financial reporting framework involves the use of acceptable accounting standards such as IFRS, IPSAS, and GAAP depending on the nature of the audited entity and the laws and regulations in which the entity operates.
The objective of a reasonable assurance engagement is a reduction in assurance engagement risk to an acceptably low level in the circumstances of the engagement as the basis for a positive form of expression of
the practitioner’s conclusion.
You have been requested by your audit senior to prepare training materials for audit trainees on ISA 560: Subsequent events.
Prepare a brief presentation which discusses:
(i) The two types of subsequent events, giving examples of each.