Other Types of Reports Flashcards
Accountant compiling FS of nonpublic company that omits substantially all disclosures required. What should accountant do
Need not advise the industry trade association of the omission of all disclosures.
Do the SSARSs require that the compilation report be printed on the accountant’s letterhead and that the report be manually signed by the accountant?
No for both
The compilation report requires the signature of the accountant (or firm), but that signature may be printed or manually signed. The compilation report requires the identification of the accountant’s city and state, which may be accomplished by presenting the report on the accountant’s letterhead; otherwise, that information may be provided in the signature block.
Which of the following is not included in a service auditor’s report?
Statement of inherent risk limitations present in the service organization
An accountant’s standard report on a compilation of a projection should NOT include a statement that
The hypothetical assumptions used in the projection are reasonable in the circumstances
to compile financial statements the accountant should possess a:
general understanding of the nature of the entity’s business transactions,
the form of its accounting records,
the stated qualifications of its accounting personnel,
the accounting basis on which the financial statements are to be presented, and
the form and content of the financial statements
If the auditor believes that financial statements which are prepared using a special purpose financial reporting framework are not suitably titled, the auditor should
Modify the auditor’s report to disclose any reservations
The Statements on Standards for Accounting and Review Services are not applicable when:
1) preparing a working trial balance;
2) assisting in adjusting the books of account;
3) consulting on accounting, tax, and similar matters;
4) preparing tax returns ;
5) providing bookkeeping or data processing services, and
6) processing financial data for clients of other accounting firms
service organization control (SOC) reports:
SOC 1: restricted-use report
SOC 2: restricted-use report
SOC 3: general-use report
An auditor is required to communicate management’s misappropriation of assets directly to a designated external party, such as a federal inspector general or a state attorney general, when
entity fails to make the necessary reports regarding fraud or illegal acts to such parties
Financial statement audits in accordance with Government Auditing Standards require the following reports:
1) an audit report;
2) a report on internal control;
3) a report on compliance with laws, regulations, and the provisions of contracts or grant agreements. The compliance report would identify the scope of the auditor’s testing of compliance with laws and regulations.
An auditor most likely would be responsible for communicating significant deficiencies in the design of internal control structure
To specific legislative and regulatory bodies when reporting under Government Auditing Standards
In a compilation, the auditor should
Read the financial statements to consider whether they are free of obvious mistakes in the application of accounting principles.
A compilation report should include the following statements:
I (We) did not audit or review the financial statements nor was (were) I (we) required to perform any procedures to verify the accuracy or completeness of the information provided by management.
A review report should include a statement:
A review is substantially less in scope than an audit in accordance with GAAS, the objective of which is the expression of an opinion.
Accountant cannot issue a review report solely on the BS of nonpublic company if:
If the scope of the inquiry and analytical procedures has been restricted.
