Audit completionPresentation and disclosureISA 315 A11 (c) Presentation and Disclosure

Accuracy and valuation Occurrence, rights and obligations Completeness Classification and understandability

Source document – Financial statementsSubstantive test of detailsAccuracy and valuation

Agree all numbers in the financial statements to auditing working papersCompleteness

Use a disclosure checklist to identify any incompleteOccurrence, rights and obligations

Inspect financial statements that all the transactions disclosed pertain and have occurredClassification and understandability

Inspect the financial statements that the wording is clear and understandable Inspect the financial statements that are disclosed in accordance with IFRS

Analytical proceduresUse comparisons e.g. Gross margin, Changes in sales, Change in debtors balances, Cost of sales and inventory, Goodwill, property plant and equipmentContingent liabilities and CommitmentsExample

Pending or threatened litigation Actual or possible claims and assessments against the equity Income and tax disputes Products defects or warranties Guarantees of obligation Agreement to purchase receivables that have been sold

During the audit Inspect minutes of meetings Review contracts, loan agreements, leases, and correspondents from government and regulatory

bodies Review tax returns and SARS correspondence Inspect bank confirmations

During audit completion Inquiry and discussion with management about its policies and procedures for identifying,

evaluating and accounting for contingencies Examine invoices form lawyers for pending or threatened lawsuits Obtain a legal letter that describes and evaluates any litigation, claims or assessments Obtain written representation from management that all litigation, asserted and unasserted claims,

and assessments have been disclosed in accordance with the applicable financial reporting framework

Review audit work papers for signs of contingencies Obtain and evaluate letters from the client’s attorneys(by letter of audit inquiry) Inquiry of client’s attorney for

Pending litigation Asserted and unasserted claims with or assessment with which the client has involvement A request of the law firm to identify any unlisted pending or threatened legal actions

Subsequent EventsAudit procedures

Inquire from management Correspond with attorney Review internal statements prepared subsequent to balance sheet date Examine minutes issued subsequent reporting to the balance sheet date Obtain managements representation letter

Management Representation LetterPurpose of the letter

To impress upon management its responsibility for the assertions in the financial statements To remind management of potential misstatements or omissions in the financial statements To document the responses from management to inquiries about various aspects of the audit

Four categories in management representation letter Responsibility for financial statements Completeness of information Recognition, measurement, and disclosure Recording and Disclosing subsequent events

Communicate with the Audit Committee and Management Communicate internal control deficiencies Other communication with audit committee Communicate fraud and illegal acts Management letters