Report on Other Information

Question 1

What should auditors do to other information in documents containing audited financial statements?

Answer 1

Read the other information

Question 2

What should an auditor do if other information requires revision but management refuses to make revision?

Answer 2

Include Other-Matter paragraph in auditor’s report, Withhold report, or withdraw from engagement

Question 3

What should an auditor do if other information has a material misstatement of fact and management refuses to correct?

Answer 3

Notify those charged with governance

Question 4

Can an auditor write and other-matter paragraph disclaiming an opinion on the other information?

Answer 4

Yes

Question 5

What is supplementary information considered?

Answer 5

Information presented outside the financial statements

Question 6

What objectives does an auditor have when reporting on supplementary information?

Answer 6

Evaluate presentation and report on whether supplementary information is fairly stated, in all material respects

Question 7

What audit procedures are used for auditing supplementary information?

Answer 7

Inquire of management, determine if information complies with applicable criteria, Obtain preparation method, Compare information with audited financial statements, inquire regarding assumption, evaluate information, and obtain written representations

Question 8

How can an auditor’s report on supplementary information be presented?

Answer 8

As an other-matter paragraph in the auditor’s report or in a separate report

Question 9

What procedures are done on required supplementary information?

Answer 9

Inquire of management, determine if supplementary information is consistent, and obtain written management representations

Question 10

Is an auditor required to audit required supplementary information?

Answer 10

No

Question 11

Where should an auditor include required supplementary information?

Answer 11

Other-matter paragraph

Question 12

Can a reporting accountant report on the application of accounting principles to a hypothetical transaction?

Answer 12

No

Question 13

Is a reporting accountant required to be independent of the entity?

Answer 13

No

Question 14

Should a reporting accountant’s report restrict use to specific parties?

Answer 14

Yes

Question 15

If the reporting accountant is not independent, a statement in the report should include?

Answer 15

Lack of independence

Question 16

For distribution of reports only outside the U.S., the auditor may use either?

Answer 16

Report of other country or U.S. form of report that reflects that the financial statement reflects being prepared in accordance with framework gnerally accepted in another country

Question 17

If the another country’s report is distributed in the U.S., what should the auditor do?

Answer 17

Report using a U.S. form of report with an empasis-of-matter paragraph