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CA Final · Advanced Auditing, Assurance and Professional Ethics

Completion and Review for CA Final Audit: SA 560 and SA 580

Completion and Review covers the last audit steps before and after you sign. SA 560 deals with events between the period end and the report date, and facts found later. SA 580 deals with written representations from management. Solve by stating the provision, applying case facts, and concluding the action.

What this chapter covers

This chapter covers two Standards on Auditing that close the engagement. SA 560 (Subsequent Events) asks what you do about events that occur after the balance sheet date. It splits them by timing: up to the date of the auditor's report, after that date but before the financial statements are issued, and after issue. SA 580 (Written Representations) asks what management must confirm in writing, and what you do when the confirmation is doubtful or refused.

The two standards share one idea: the auditor's work does not end at the last audit procedure. Management may know things you do not, and the world keeps moving after year end. Both standards protect you by fixing who is responsible for what and when.

The chapter connects to the rest of the paper in several places. It links to audit evidence, going concern, modified opinions and emphasis of matter paragraphs under the reporting standards, and to those charged with governance and communication. It also links to professional ethics, because integrity of management is central to representations. Case questions often combine this chapter with those topics.

The chapter is compact, rule-based and heavily application-driven, so it rewards a student who learns the timeline and the required action for each situation. Examiners can easily frame a short case: a litigation loss, a fire, or a fraud discovered after signing, and ask what the auditor does. The answers follow a fixed pattern, so well-prepared students can score reliably in both MCQs and written answers. Weak preparation shows up as confusion between the three time periods, and that costs marks.

Completion and Review: topics in the order to study them

  1. 1SA 560 Subsequent Events: Objective and TypesStart here to learn the definition, the objective and the timeline that every later topic depends on.
  2. 2Events Occurring up to the Date of Auditor's ReportThis is the period where the auditor has an active duty to perform procedures, so learn it first after the framework.
  3. 3Facts Discovered After the Date of the Auditor's ReportIt builds on the previous topic by showing how responsibility shifts for facts discovered after the report date but before the financial statements are issued.
  4. 4Facts Known After Financial Statements Are IssuedThis is the last time period. It has its own requirements, including how management informs those who received the original financial statements, so learn it once the first two periods are clear.
  5. 5SA 580 Written Representations: Objective and RequirementsMove to the second standard only after SA 560 is firm, so you can see how representations cover subsequent events too.
  6. 6Reliability, Doubts and Refusal of Written RepresentationsThis applies the requirements to difficult situations and links to modified opinions, so it comes last.

How to prepare Completion and Review

Treat this chapter as two timelines and one decision tree. Learn the structure first, then drill it with short cases.

  1. Read the objective and definitions of SA 560 and draw a timeline: period end, date of auditor's report, date financial statements are issued, and after issue.
  2. For each segment of the timeline, write three lines: who is responsible, what the auditor must do, and what the possible outcomes are.
  3. Do the same for SA 580: list what management must represent, the date and period the representations cover, and who should give them.
  4. Build a decision tree for doubts and refusals: concerns about integrity, refusal to give specific representations, and the resulting effect on the opinion or on withdrawal.
  5. Practise at least five short case scenarios. In each, state the provision, apply the facts and give the conclusion in that order.
  6. Practise MCQs that test small differences, such as whether an event is adjusting or non-adjusting, and which timeline segment applies.
  7. Revise using a one-page summary and rewrite the timeline from memory the day before the exam.

Common mistakes in Completion and Review

  • Mixing up the three time periods in SA 560

    Fix: Draw the timeline each time you start a case and mark where the event or discovery sits before choosing the action.

  • Saying the auditor must keep searching for subsequent events after the report date

    Fix: Remember that the active duty runs up to the report date. After that, the duty arises only when a fact becomes known.

  • Treating written representations as sufficient audit evidence

    Fix: State that representations support, but do not replace, other evidence, and that they cannot settle a matter by themselves.

  • Giving a conclusion without applying case facts

    Fix: Write in provision-facts-conclusion form, naming the specific event, date and party from the case.

  • Ignoring the integrity issue when management refuses representations

    Fix: First discuss the concern, then reassess integrity and the reliability of other evidence, and only then decide on modification or withdrawal.

  • Forgetting the date rule for representations

    Fix: Revise that representations are dated as near as practicable to, but not after, the auditor's report date, and cover all periods referred to in the report.

Last-day revision: Completion and Review

  • SA 560 covers events between the period-end date and the date of the auditor's report, and facts found after that date.
  • The auditor must perform procedures to obtain evidence that all subsequent events up to the report date requiring adjustment or disclosure are identified.
  • After the report date, the auditor has no obligation to perform procedures on the financial statements.
  • If a fact found after the report date but before issue would have affected the report, discuss with management and those charged with governance.
  • If management amends the financial statements, extend subsequent-event procedures to the date of the new report. Then give a new report dated no earlier than the date of approval of the amended financial statements. Where the amendment is restricted to the specific subsequent event, you may instead give a dual-dated report, with an additional date restricted to that amendment. With dual dating, your extended procedures are restricted solely to that amendment.
  • If management does not amend and the auditor believes it should, the answer depends on timing. If the report has not yet been provided to the entity, modify the opinion (qualified or adverse) and then provide the report. If the report has already been provided, tell management and those charged with governance not to issue the financial statements to third parties before the necessary amendments are made. If they are issued anyway, take appropriate action to prevent reliance on the report.
  • After issue, if a fact would have caused the report to be amended had it been known, discuss the matter with management and those charged with governance. If the financial statements are amended, extend procedures to the new report date and give a new report on the amended financial statements. Management must also take steps to inform those who received the original financial statements.
  • SA 580 requires written representations from management with appropriate responsibility, including on its responsibility for the financial statements and the completeness of information given.
  • Representations should be dated as near as practicable to, but not after, the date of the auditor's report.
  • Written representations do not replace other audit evidence on their own.
  • If representations are inconsistent with other evidence, investigate and reconsider the reliability of management and of other representations.
  • If management refuses a required representation, discuss the matter, reassess integrity and the reliability of other representations and audit evidence, and determine the possible effect on the opinion. If management does not provide the representations on its responsibilities (preparation of the financial statements and completeness of information), or integrity concerns make the representations unreliable, the auditor shall withdraw from the engagement where practicable and permitted by law. If withdrawal is not possible, the auditor disclaims an opinion.

Completion and Review practice questions

Completion and Review in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Completion and Review: frequently asked questions

Is Completion and Review a big chapter for CA Final Audit?

It is small in length but easy to test in case form. Because the rules are structured, you can prepare it well in a short time. Do not skip it.

How do I remember the SA 560 time periods?

Draw a timeline with three markers: report date, issue date and after issue. Attach one action to each marker. Repeat the drawing a few times from memory until it is automatic.

What should I write when management refuses to give a written representation?

State that the auditor discusses the matter with management, reassesses management's integrity and the reliability of other evidence, and then modifies the opinion or withdraws if needed. Tie each step to the case facts.

How is this chapter linked to other topics in the paper?

It links to modified opinions, emphasis of matter, going concern, fraud and communication with those charged with governance. Case questions often combine it with these areas, so revise the links together.