A&A: Special Engagements Flashcards
Financial info other than F/S
CAS 805 (audit)
CAS 2400 (review)
CAS 4400 (no opinion)
CAS 805
audits of single FS and specific elements, accounts or items of a FS
o Explains reporting framework: audit over specific financial information (e.g. gross revenues)
o Describes report: provides opinion on whether the statements are prepared in accorance with IFRS/ASPE!!!!!!!
o Assurance level: reasonable assurance (highest)
o Explains procedures: audit procedures, like confirmation, inspection, recalc.m reperform, observation
o Cost: most expensive as its highest level of assurance
o Considers materiality: specific materiality, lower than materiality for the overall FS
CSRE 2400
engagements to review historical FS
o Explains reporting framework: covers reviews of FS and other histroical FS
o Describes report: auditor’s conclusion - that nothing has come to auditors attention to indicate that XXX is not prepared, in mateiral respects, in accordance with IFRS/ASPE!!!!!
o Assurance level: limited assurance (lower)
o Explains procedures: limited to anlaytical and inquiry, less rigorous than CAS 805
o Considers materiality: specific materiality, lower than materiality for the overall FS
o Cost: less than CAS 805 as procedures are limited.
CSRS 4400
agreed-upon procedures engagements
o Explains reporting framework: N/A
o Describes report: reports factual results of procedures. Up to reader to interpret the results of the procedures
o Assurance level: no assurance
o Explains procedures: specific requested/agreed procedures (requestor can have input on procedures)
o Considers materiality: N/A
o Cost: lowest cost option
What report for non-financial data + assurance of compliance with criteria
CSAE 3530 / 3531
CSAE 3530
(Attestation Engagement on Compliance)
Mgmt already declared (attests) they have complied or met goal
Auditor to evalaute statement of attestation
1) identify use
2) explain application (see above)
3) consider users needs (can be audit or review, since user want assurance, choose audit)
CSAE 3531
(Direct Engagement on Compliance)
Mgmt has not made claim
Auditor to evaluate information to support whether they have met goal
What to write when evaluating report
Explain nature of engagement to develop depth
Framework of report (explain application of report)
Level of assurance
Users need
CSRS 4200 Compilation
No opinion
Non finanical info
CSAE3000
CSAE3001
CSAE3000
attestation engagements other than audits or reviews of historical financial information
o Reporting on items other than F/S or other historical financial info
o Must identify or develop criteria to assess the information that are relevant, reliable, neutral, understandable, and complete
o May cover direct or attest
o Audit or review
o Similar to CSAE 3530 but high-level standards (planning, performing, documentation, and reporting)
CSAE3001
direct engagements
o Similar to CSAE3000, just report on results of testing the specific criteria
Offering documents
- HB 7150 auditor’s consent to the use of a report of the auditor included in an offering document
- Review for material inconsistencies and accurate reproduction
- Perform procedures over intervening period events (between date of issuance of report and inclusion in offering document)
Interim F/S
- HB 7060 auditor review of interim financial statements
- Purpose to assist AC in discharging its responsibilities WRT interim F/S issued under securities legislation
- Limited assurance – whether any material modification should be made for those statements to be in accordance with applicable FR framework
- Must gain an understanding of the entity and its environment, including internal control
- Must read interim MD&A and ensure consistency with interim F/S
internal controls
CSAE 3416
CSRS 4400
CSAE3416
reporting on controls at a service organization relevant to user entities’ internal control over financial reporting
o Controls at a service organization e.g. payroll (ADP)
o Must relate to internal control over FR
o Types of reports to be issued:
Type 1 – at specific date; opinion on design of controls only (can suggest if there’s control weakesses, suggest fix, then provide report at a point in time after fix. OR new system, then provide point in time as can’t provide report on the entire year).
Type 2 – throughout specified period; opinion on design and effectiveness during period
Reasonable assurance
Audit opinion provided on whether XXX is prepared in accordance with ASPE
- Provides an opinion on preparation in accordance with GAAP
- That the F/S are free from material misstatement due to fraud or error
Limited assurance (conclusion on report)
Conclusion that nothing has come to the practitioner’s attention that indicates the F/S are not prepared in accordance with GAAP, or that material misstatement exists due to fraud or error
CSAE 3530/3531: Consider whether you can provide assurance on the agreement
some cases, the terms are too vague for you to be able to provide assurance and you have to recognize this (usually then suggest a 4400 as an alternative)
Discuss which terms would have to be clarified before you could provide the report. e.g., “cost”. Does it mean variable cost, incremental cost, cash cost, full cost etc
Audit of Internal Control over Financial Reporting: what to assess
Assess whether:
- designed effectively
operating effectively
timing of tests
entity level as well as specific controls
decide what controls to test
Report that can always be suggested
CSRS 4400
-if no assurance required (report from auditor that terms of agreement abided by)
- auditor only performs procedures that company requests (Agreed upon)
- typically only used for financial info other than FS
- costs less than CSAE3530/CSAE351 as no assurance is provided
Reason why it may not be possible to provide the requested level of assurance
Discuss which terms would have to be clarified before you could provide the report. e.g., “cost”. Does it mean variable cost, incremental cost, cash cost, full cost etc
CSAE 3000/3001 examples
− The percentage of hospital beds utilized over a period of time
− The percentage of baseball bats shattered in Major League play
− The number of full‐time students employed over a period of time
