Flashcards in A1 (5) - REPORTING ON OTHER INFORMATION Deck (22):
I. OTHER INFORMATION IN DOCUMENTS CONTAINING AUDITED FINANCIAL STATEMENTS - Auditor's Responsibility
1- Generally, an auditor is not responsible
2- Auditor should read the other information
3- Disclaimer of Opinion on Other Information is optional
I. OTHER INFORMATION IN DOCUMENTS CONTAINING AUDITED FINANCIAL STATEMENTS - material inconsistency
1- FSs:- Modify the audit opinion If management refuses to make the revision.
2- Other Information
a) Revise the audit report
b) Withhold the use of the report
c). Withdraw from the engagement
I. OTHER INFORMATION IN DOCUMENTS CONTAINING AUDITED FINANCIAL STATEMENTS - Material Misstatement
1- Discuss the matter with management
2- If management refuses to take corrective action, the auditor should request that management consult with a qualified third party, such as the entity's legal counsel
3- management refuse - notify those charged with governance
II. REPORTING ON SUPPLEMENTARY INFORMATION IN RELATION TO THE FINANCIAL STATEMENTS AS A WHOLE - Auditor responsibilities
1- To evaluate the presentation of the supplementary information to FS
2- To report on whether the supplementary information is fairly stated
II. REPORTING ON SUPPLEMENTARY INFORMATION IN RELATION TO THE FINANCIAL STATEMENTS AS A WHOLE - Conditions for Reporting
1- Information related to information used in FSs
2- information relates to the same period as FSs
3- The FSs audited by the auditor who is to report on the information
4- Neither an adverse opinion or a disclaimer of issued
5- The supplementary information be readily available
II. REPORTING ON SUPPLEMENTARY INFORMATION IN RELATION TO THE FINANCIAL STATEMENTS AS A WHOLE - Management Responsibility
1- Prepare the information in line with applicable criteria
2- Provide the auditor with Rep letter
3- Present the information with the audited financial statements or make the audited financial statements readily available to the intended users of the supplementary information by the issuance date of the supplementary information and auditor's report.
II. REPORTING ON SUPPLEMENTARY INFORMATION IN RELATION TO THE FINANCIAL STATEMENTS AS A WHOLE - Audit Procedures
2- ensure compliance with the applicable criteria.
3- Obtain an understanding of the methods used
4- Compare and reconcile the info. to the audited FSs
5-Evaluate the appropriateness and completeness
6- Obtain rep. letter from management
III. REQUIRED SUPPLEMENTARY INFORMATION - Auditor responsibilities and procedures
1- Generally, an auditor is not responsible
2- Opinion Not Required
3- Opinion Permitted , auditor should follow in Item II
4- Inquire of management about the methods used
5- Supplementary information is consistent with management's responses, audited FSs, and other knowledge.
6- Obtain rep Letter from management
III. REQUIRED SUPPLEMENTARY INFORMATION - Reporting on Supplementary Information
Report on the FSs should include an explanatory paragraph explain the following circumstances,
(1) Auditor has applied the required procedures;
(2) The required supplementary information is omitted
(3) Some required supplementary info. is missing
(4) The auditor has identified material departures from the prescribed guidelines
(5)The auditor is not able to complete the required procedures; or
(6) There is substantial doubt about conformance of required supplementary information
IV. SEGMENT INFORMATION - Auditor responsibilities
The auditor is responsible for reporting on the fairness of the information presented.
IV. SEGMENT INFORMATION - company refuses
to disclose the required segment information
a qualified or adverse opinion
IV. SEGMENT INFORMATION - Scope Limitation
a qualified or disclaimer
V. CONDENSED FINANCIAL STATEMENTS - main characteristics .
A) Less detail than complete financial statements and do not present all required disclosures under GAAP.
B) They are generally derived from audited FS
C) should be so marked to prevent users from erroneously
assuming that they contain all required disclosures.
V. CONDENSED FINANCIAL STATEMENTS - reporting contents
1-That auditor audited and issue opinion on complete FS
2-The date of the auditor's report on the complete FS
3-The type of opinion expressed
4-Whether information in condensed FSs is fairly stated
V. CONDENSED FINANCIAL STATEMENTS - no reference to the auditor's name shall be allowed for client prepared document unless
1- The audited FSs are enclosed in the same document;
2- The auditor's report on the condensed FS is included
3- document referred to to information filed with a regulatory agency.
VI. SELECTED FINANCIAL DATA - main characteristics .
1- SFD are not a required part of the basic FS
2- SFD are responsibility of management.
VI. SELECTED FINANCIAL DATA -Reporting
1- REPORT should be limited to data that are derived from audited FSs
2- Report should specifically identify the data that is being reported on.
3- Generally, an additional paragraph is added to the standard auditor's report
4- The auditor must indicate whether the selected financial data is fairly stated,
VII. REPORTS ON THE APPLICATION OF ACCOUNTING PRINCIPLES - Reporting Accountant
A reporting accountant is an accountant in public practice who prepares a written report (or provides oral advice) on The application of accounting principles to specific transactions
VII. REPORTS ON THE APPLICATION OF ACCOUNTING PRINCIPLES - Procedures
1- Understand Nature of the transaction(s),
2- Review applicable GAAP
3- Consult with other professionals
VII. REPORTS ON THE APPLICATION OF ACCOUNTING PRINCIPLES - Report
1- A brief description of the nature of the engagement
2- Statement that the engagement performed accordance with AICPA standards
3- Description of the transaction including assumptions
4- Statement describe used accounting principle
5- Statement that the preparers of FS are responsible for proper accounting treatment
6-Restricting use to specified parties
VIII. REPORTING ON FINANCIAL STATEMENTS PREPARED FOR USE IN OTHER COUNTRIES - Distribution Outside U.S. Only
The auditor may use either The report of the other country or U.S.-style report modified to report on the accounting principles of another country