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Flashcards in Report on Other Information Deck (17)
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1
Q

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

A

Read the other information

2
Q

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

A

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

3
Q

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

A

Notify those charged with governance

4
Q

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

A

Yes

5
Q

What is supplementary information considered?

A

Information presented outside the financial statements

6
Q

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

A

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

7
Q

What audit procedures are used for auditing supplementary information?

A

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

8
Q

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

A

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

9
Q

What procedures are done on required supplementary information?

A

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

10
Q

Is an auditor required to audit required supplementary information?

A

No

11
Q

Where should an auditor include required supplementary information?

A

Other-matter paragraph

12
Q

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

A

No

13
Q

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

A

No

14
Q

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

A

Yes

15
Q

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

A

Lack of independence

16
Q

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

A

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

17
Q

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

A

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