Page 121 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
or flood.
Recoverability: Inquiry about events affecting the recoverability of assets (e.g., Product Banned).
Capital & Liability
Capital Changes: Inquiry about increases in capital, issuance of debt instruments, or plans for mergers or
liquidations.
Commitments: Inquiry about new commitments, borrowings, or guarantees.
Contingencies: Inquiry about developments regarding contingencies.
Measurement: Inquiry about events affecting the measurement of estimates or provisions in the financial
statements (e.g., Draft royalty rates).
All Items
Accounting Adjustments: Inquiry about unusual accounting adjustments (e.g., Heavy sales return).
Accounting Policy Appropriateness: Inquiry about events questioning the appropriateness of accounting
policies, such as those affecting the going concern assumption (e.g., Sale of Long-term Investments).

(CNO-SA560.100) Facts Which Become Known To The Auditor After The Date Of The Auditor's Report
But Before The Date The Financial Statements Are Issued
No obligation
Auditor has no obligation to perform any audit procedures after date of Audit report
But if he comes to know any facts (existing as on date of Audit Report) which if known earlier would have
change opinion of Auditor, then auditor has to perform audit procedures:
• Discuss matter with management and TCWG.
• Determine whether FST need amendment.
• Inquire how management intends to amend FST
If Management amends FST
Perform audit procedure on the amendment unless restricted by law (In India auditor has all the rights
till the date of AGM, so Auditor can perform these audit procedures). Audit procedure includes: -
• Extending audit procedures to the date of new audit report
• Provide new Audit report on amended FST.
• Auditor should not sign (date) till the new FST are signed (approved) by BOD.
Mgt does not amend FST
Whether Law, regulation or FRF requires amendment.
• Law says it is required.
• Law doesn’t make it mandatory but auditor thinks it is required.
- If Audit Report is not provided to the entity, Auditor should modify the opinion and give his report.
- If Audit Report already being issued, auditor should notify management and TCWG not to issue FST to 3rd
party before amendments. If management doesn't listen to Auditor, then auditor should take appropriate
action to seek to prevent reliance on Auditor's report (public notice, speak at AGM)
Other Amendments
Law, regulation and framework not prohibiting management from making other amendments i.e.,
amendment other than the subsequent event (Amendment).
In such cases, Auditor may go and check other amendments or Auditor has option to restrict his Audit
procedures only to the amendment because of subsequent event.
He shall do either of the following if he wants to restrict his checking.
• Dual Dating- Amend Auditor's report to include additional date along with the original audit report date,
specifying that we restricted audit procedures only to subsequent event amendment as described in Notes to
accounts.
• Auditor can include EMP or OMP which clearly express that auditor has restricted audit procedure solely to
subsequent event amendment.

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