ABSTRACT
Introduction In this chapter, we begin our discussion of the nal phase of the audit process. During the nal stages of an engagement, the auditor evaluates the evidence he or she has collected and compares it with the set of nancial statements and related disclosures prepared by management (see Figure 14.1). As part of this nal process we also consider guidance on the audits of “groups” of companies, i.e., companies that have multiple legal or operating entities either domestically or around the world. These group audit requirements, while always considered good practices, have raised the bar in terms of how such large-scale audits must be planned, carried out, and most importantly, concluded. No matter what the size or complexity of the audit, this nalization process re ects the auditor’s judgments and decisions about residual risks, the e ectiveness of internal controls, the risk of material misstatement, and the evidence gathered to test management’s assertions about transactions, accounts, and presentation and disclosure. At this stage the auditor considers the appropriateness of the client’s accounting policies and choices and evaluates the overall quality of the information contained in the nancial
statements. Most of the material in this chapter is equally applicable to GAAS Audits and to Integrated Audits except where noted. Finally, we look at certain audit wrap-up procedures that are designed to assure that the conclusions are appropriate and based on a full understanding of all available information.
