Flashcards in A2 (4) - Reporting on Comparative Financial Statments Deck (11):
PERIOD(S) IN QUESTION - Current Period Compiled and Prior Period Reviewed (service downgrade)
1). Additional Paragraph to current period, This description should include the date of the original report and a statement that no review procedures were performed in connection with the review engagement after the date of the review report
2). Reissue the prior period review report - If a combined report (current period with prior period )is used (item a above), the report should state:
"No review procedures were performed in connection with the review engagement after the date of the review report
PERIOD(S) IN QUESTION - Current Period Reviewed and Prior Period Compiled (service upgrade)
The report on the prior period(s) should be updated and issued as the last paragraph of the current period's report.
OTHER REQUIREMENTS- Columnar Form
Financial statements that have not been audited, reviewed, or compiled should not be presented in columnar form with financial statements on which an accountant has reported.
OTHER ACCOUNTANTS INVOLVED IN PRIOR PERIODS -
1), Generally Predecessor accountants are not required to reissue their report on prior periods
OTHER REQUIREMENTS - Omission of Required Disclosures
NO report on comparative financial statements when statements for one or more, but not all, of the periods presented omit substantially all of the disclosures required by GAAP.
OTHER REQUIREMENTS - Information Affecting Previous Reports
A separate paragraph should be added to the prior period report that states:
1. The date of the original report;
2. That the statements of change in prior period.
3. The reason for the change in the original report
OTHER ACCOUNTANTS INVOLVED IN PRIOR PERIODS- If the predecessor accountants decide to reissue their report, they should
a. check the appropriateness of the report Considering the current presentation of statements for the prior period based on subsequent events; and In light of required modifications that may be necessary in their report.
OTHER ACCOUNTANTS INVOLVED IN PRIOR PERIODS - Procedures should be taken If the predecessor accountants decide to reissue their report,
1). Read the statements and the report of the current period
2). Compare the prior period statements with those issued previously and currently
3) . Obtain a letter from the successor accountants staling that they are not aware of any relevant information that might have a material effect on the prior period statements
OTHER ACCOUNTANTS INVOLVED IN PRIOR PERIODS - Predecessor's Report Not Reissued
Make reference to the report of the predecessor in the current report; or
1, statement that the prior periods were compiled or reviewed by othe accountants (who are generally not named, unless the predecessor's and successor's practices are combined);
2. The date of their report;
3. A description of the standard form of disclaimer or limited assurance given in the prior report; and
4. A description of any modifications contained in the report
REPORTING WHEN ONE PERIOD IS AUDITED - Current Period Unaudited and Prior Period Audited (downgrade in service)
Additional paragraph should include :-
1). That prior period statements audited;
2. The date of the previous report(s);
3. The opinions expressed,
4) he reasons , if other than unqualified,
5). That no auditing procedures have been performed since the previous report date