Unit 12 Flashcards
What are 3 common special engagements?
- Reports on applying specified procedures to financial information other than financial statements
- Reports on compliance with contractual agreements
- Reports on a component of the financial statements
What are 3 common special engagements?
- Reports on applying specified procedures to financial information other than financial statements
- Reports on compliance with contractual agreements
- Reports on a component of the financial statements
What is a report on applying specified procedures to financial information other than financial statements?
- This report is issued when the auditor has performed agreed-upon procedures over specific financial information and then reports the factual results of these procedures.
- No assurance is provided.
- A due diligence engagement is an example of this kind of report.
When is a report on compliance with contractual agreements requested?
This type of report may be requested when a specific user is looking for assurance on compliance with specific requirements of a contractual agreement, such as covenants or dividend restrictions.
What must an auditor have to perform a report on compliance?
Professional competence
What should the report on compliance indicate?
that the entity has complied with the provisions of the engagement.
What is a report on a component of the financial statements?
This type of report is issued on a single financial statement line item.
This report is appropriate when a user wants some assurance over a particular financial statement account such as sales, AR or inventory.
What must an auditor consider when providing a report on a component of the financial statements?
the auditor must consider the related financial statement items that may have a material impact on the specific accounts being reported on.
For example, if the auditor is reporting on sales, the AR and AFDA should be considered.
