Procedures Performed During Fieldwork

• Completing substantive procedures.

• Attorney’s letters.

• Written representations.

• Going-concern assessment.

• Adjusting entries.

• Audit documentation review.

• Subsequent events.

• Subsequently discovered facts.

Roll-forward Procedures

Roll-forward procedures: Extend work from interim period to date of the financial statements.

• Include both tests of controls and substantive procedures.

• Performed following date of the financial statements.

• Idea is to obtain evidence through the date of the financial statements.

Analytical Procedures

Analytical procedures: Study of relationships among financial and nonfinancial data:

• Can be used in planning (required), substantive testing, and near the end of the audit (required).

• Near the end of the audit, analytical procedures identify unusual or unexpected relationships not previously identified.

Review accounts for “miscellaneous,” “other,” and “clearing” accounts (may relate to earnings management).

Accounting Estimates

Accounting estimates:

• Examples include future cash flows in evaluating asset impairments, allowance for doubtful accounts for receivables, and depreciation lives for fixed assets.

• Review management’s process for developing estimates.

• Review estimates for reasonableness.