Flashcards in Auditing 1: Deck 4 Deck (14):
What is an auditor's responsibility for supplementary information required by the FASB?
Auditor should apply certain limited procedures to the information and add an other-matter paragraph to the audited report
An accountant in public practice, other than the continuing accountant, who prepares a written report; may not report on hypothetical transaction
Government accounting standards board
Information that is outside the basic financial statements
Two objectives of an auditor reporting on supplementary information
1. Evaluate the presentation of the supplementary information in relation to the financial statements as a whole
2. report on whether the supplementary information is fairly stated, in all material respects
Auditor's report on supplementary information related to non issuers. How should this be presented?
Either as an other-matter paragraph OR separate report
Limited procedures include:
Inquiry of management, determine if supplementary information is consistent, and obtain written management representations
What kind of report may be used for distribution only outside the United States?
Report of the other country OR a U.S. form of report that reflects that the financial statements being reported on
Wha kind of report may be used for distribution in the United States?
A U.S. form of report with an emphasis-of-matter paragraph
What is meant by the term GAAS?
Measures of the quality of the auditor's performance
Opinion opinion phrase:
"in our opinion, except for..."
Auditor's responsibility phrase:
"our responsibility is to express an opinion..."
What kind of opinion is appropriate when a financial statement is omitted?