Practical accounting and auditing guidance from the Plain-English A&A update service by Dr. Thomas A. Ratcliffe, PhD, CPA
The accounting and auditing issues that are discussed in this bi-weekly report are as follows:
1) AU-C Section 560: Subsequent Events & Subsequently Discovered Facts – In implementing the clarified auditing technical literature beginning with calendar-year 2012 financial statement audit engagements, auditors will find new guidance that needs to be followed in addressing subsequent events and subsequently discovered facts.
2) AU-C Section 580: Written Representations from Management – The clarified auditing technical literature also contains new guidance associated with written representations from management that are required to be received as an integral part of each financial statement audit.
3) AU-C Section 585: Consideration of Omitted Procedures – In implementing the clarified auditing standards, auditors also need to consider new guidance associated with how omitted procedures should be addressed.
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