Audit Engagement Closure Checklist — ICAI Audit Working Paper
(Following draft may be used as an example)
Purpose
The purpose of this working paper is to:
Document the results of audit procedures performed during completion of the assignment.
- Evaluate on an overall basis the results of our audit procedures and findings for audit objectives associated with significant risks, including fraud risks.
- Evaluate significant findings and issues resulting from the audit, actions taken to address them (including additional evidence obtained) and the basis for the conclusions reached, and
- Evaluate the independence during the assignment and ethical issues.
| Prepared by:
Audit Team | Date |
|---|
| Reviewed by:
Engagement Manager: | Date |
| Reviewed by:
Engagement Partner: | Date |
Results of completion procedures
Overall review of financial statements
We have audited the financial statements of the company and documented the results of our overall review of the financial statements.
Final evaluation of audit results for specific topics
Fraud
| We planned our audit in such a manner to assess the fraud risks relating to fraudulent financial reporting to specifically address the fraud risks arising from management overriding the internal controls.
We have summarized our approach in identification of risk as below mentioned:
Identified risk that may result in a material misstatement due to fraud and performed specific procedures for the same.
Assessed the identified risks after taking into account an evaluation of the entity's programs and controls.
Made inquiries of management and others within the entity to obtain their views about the risks of fraud and how they are addressed.
The unusual relationships that were identified in performing analytical procedures in planning stage were also taken care of in identification of fraud elements that may be present. |
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| Evaluation of business rationale related to significant unusual transactions |
| On the basis of audit procedures performed and knowledge gained of the company’s business, we have identified the significant unusual transactions of the company. The nature, timing, or extent of audit procedures were designed in a manner to ensure that all significant unusual transactions are allocated to appropriate level of supervision.
While assessing the same, we have considered fraud risk factors in identifying and assessing risks of material misstatement due to fraud that may be present due to significant unusual transactions. Refer Chapter 6.2 |
Going concern
Our audit procedures for the consideration of going concern were designed keeping in mind the below points : Refer SA 570(Revised)
We considered the results of our procedures performed in planning, gathering evidential matter relative to the audit objectives, and completing the audit.
Our main objective was to identify conditions and events that, when considered in the aggregate, indicate there could be substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.
No such instance came to our notice which raises a question on the going concern of the company.
Laws and regulations
The following audit procedures were performed in this aspect :
A kick off meeting was held with the management in order to obtain an understanding about the various laws and regulations applicable to the company.
Obtained confirmation about the legal cases against the company or any charge of non-compliance.
No material case of any charge of non-compliance or penalty came to our notice.
Related parties
We performed our audit procedures to obtain an understanding of the company's relationships and transactions with its related parties which increases the risk of a material misstatement in the financial statements.
The following audit procedures were performed in this aspect :
The management had disclosed the related parties of the company and transactions with the related parties during the year. Other than that, we verified if there are other probable related parties and relationships and transactions with such related parties.
Discussed with the management to understand who holds authorization for approving transactions with related parties.
Accounting for and disclosing relationships and transactions with related parties in the financial statements.
Identifying and Assessing Risks of Material Misstatement. The following procedures were performed to obtain an understanding of the company's relationships and transactions with its related parties:
Obtained an understanding of the company's process and policies. Any criteria for entering into transaction with related parties and verify if the transaction was entered into in accordance with the criteria.
Performing inquiries.
Based on above procedures, all the related parties & transactions with them have been correctly recorded.
Subsequent event(s)
The procedures were planned and performed in respect of following:
Traced if there exist any transaction that may have adjusting or non-adjusting effect on the financial statements.
Cut Offs: An examination of data was performed in order to ensure that proper cut offs have been considered for the balance sheet date and it clearly distinct the data of current year and subsequent year. Refer SA 560
Contingent liabilities or Future commitments
Going Concern: Inquired with the management whether there have been any major events such as affecting going concern.
Based on above procedures, it is concluded that all relevant disclosures have been made in this respect in the financials.
Reassessment of Materiality
In this section, we have documented the impact on materiality due to significant audit findings.
| Particulars | Amount (in INR) |
|---|
| Materiality for planning purposes has been documented in the Planning section | |
The planning materiality ascertained at the planning stage has not been revised during the course of our audit.
- Evaluate significant findings and issues resulting from the audit, actions taken to address them (including additional evidence obtained) and the basis for the conclusions reached.
