How To Compile Evidence Between Year End and the Audit Report Date

Auditors check financial data to express an opinion on the financial statements.

When compiling evidence for an audit, an auditor has a responsibility to locate audit evidence after year end of the company and before the audit report. This type of evidence is known as subsequent evidence. If the auditor does not compile this evidence, he may miss something in the company's financial statements, and his audit report is incomplete. If information is incomplete, then the auditor could be in trouble for malpractice. That is why it is important for the audit to compile all available relevant evidence.

Instructions

1. Divide the types of evidence you need into Type 1 and Type 2 evidence that you think may be present on the financial statements. Type 1 evidence is any condition that could have occurred on the financial statements before the balance sheet date. Type 2 evidence is a condition that comes up after the balance sheet date.

2. Review any interim financial statements looking for errors.

3. Go over the board of directors' minutes from any meetings to find possible misconduct.

4. Write inquires to the client's lawyers and any officials asking for evidence or reassurances on the financial statements.

5. Review your remaining notes on Type 1 and Type 2 to make sure you covered all your notes. If you have not, find the appropriate resources to cover any remaining doubts.

References

• University of Delaware: Auditing Operations and Completing the Audit