ISA 550 — Related parties:

Obtain an understanding of the entity's related party relationships and transactions
Risks: undisclosed related parties, non-arm's-length transactions, related party transactions used to manipulate results
Procedures: inquire of management, inspect registers and board minutes, review contracts for related party terms, review unusual or large transactions (especially near period-end), confirm terms with the related parties, evaluate whether disclosures comply with IAS 24
Maintain professional scepticism — related party transactions may indicate fraud risk (e.g., channelling revenue through a director's company)

ISA 560 — Subsequent events:

Period 1 (between year-end and the date of the audit report): The auditor must perform procedures to identify events that require adjustment or disclosure — active duty to search for events. Procedures include: reviewing post-balance sheet transactions, reading board minutes, inquiring of management about developments.
Period 2 (between the date of the audit report and the date the FS are issued): No obligation to search, but if the auditor becomes aware of a material event, they must discuss with management and consider whether the FS need amendment and the audit report needs revision.
Period 3 (after the FS are issued): No obligation. But if a material fact is discovered that existed at the audit report date, the auditor considers whether to take action (e.g., advise management to reissue).

ISA 570 (Revised) — Going concern:

The auditor must evaluate management's assessment of the entity's ability to continue as a going concern for at least 12 months from the date of the financial statements
Going concern indicators — financial: Net liability/current liability position, adverse key ratios, inability to pay creditors on time, inability to comply with loan covenants, changing from credit to cash-only trading, inability to obtain finance
Going concern indicators — operating/other: Loss of key management, loss of major customer/supplier/market, labour difficulties, shortage of key supplies, legal/regulatory proceedings, loss of a major license/franchise
Auditor's procedures: Evaluate management's assessment (period covered, assumptions, cash flow forecasts), consider events and conditions beyond management's assessment period, evaluate the adequacy of disclosures, obtain written representations about management's plans
Reporting implications:
- Going concern basis appropriate and no material uncertainty → unmodified opinion
- Going concern basis appropriate but material uncertainty exists and adequately disclosed → unmodified opinion with a separate "Material Uncertainty Related to Going Concern" section in the audit report
- Going concern basis appropriate but material uncertainty exists and NOT adequately disclosed → qualified or adverse opinion (inadequate disclosure)
- Going concern basis NOT appropriate (entity cannot continue) → adverse opinion

ISA 580 — Written representations:

The auditor must obtain written representations from management (and TCWG where appropriate) confirming key matters:
- Management has fulfilled its responsibilities for the preparation of the FS (true and fair view, compliance with framework)
- All information and access has been provided to the auditor
- All transactions have been recorded and reflected in the FS
- Specific representations on matters where other evidence cannot be expected (e.g., management's intentions regarding assets, completeness of contingent liabilities, related party disclosures)
Written representations are necessary but NOT sufficient on their own — they must be corroborated by other evidence
If management refuses to provide written representations: this is a scope limitation → qualified opinion or disclaimer of opinion
The representation letter is dated the same date as the audit report

Audit and Assurance