A1 (5) - REPORTING ON OTHER INFORMATION

Question 1

I. OTHER INFORMATION IN DOCUMENTS CONTAINING AUDITED FINANCIAL STATEMENTS - Auditor’s Responsibility

Answer 1

1- Generally, an auditor is not responsible
2- Auditor should read the other information
3- Disclaimer of Opinion on Other Information is optional

Question 2

I. OTHER INFORMATION IN DOCUMENTS CONTAINING AUDITED FINANCIAL STATEMENTS - material inconsistency

Answer 2

1- FSs:- Modify the audit opinion If management refuses to make the revision.

2- Other Information

  a) Revise the audit report
  b) Withhold the use of the report
  c) . Withdraw from the engagement

Question 3

I. OTHER INFORMATION IN DOCUMENTS CONTAINING AUDITED FINANCIAL STATEMENTS - Material Misstatement

Answer 3

1- Discuss the matter with management

2- If management refuses to take corrective action, the auditor should request that management consult with a qualified third party, such as the entity’s legal counsel

3- management refuse - notify those charged with governance

Question 4

II. REPORTING ON SUPPLEMENTARY INFORMATION IN RELATION TO THE FINANCIAL STATEMENTS AS A WHOLE - Auditor responsibilities

Answer 4

1- To evaluate the presentation of the supplementary information to FS

2- To report on whether the supplementary information is fairly stated

Question 5

II. REPORTING ON SUPPLEMENTARY INFORMATION IN RELATION TO THE FINANCIAL STATEMENTS AS A WHOLE - Conditions for Reporting

Answer 5

1- Information related to information used in FSs
2- information relates to the same period as FSs
3- The FSs audited by the auditor who is to report on the information
4- Neither an adverse opinion or a disclaimer of issued
5- The supplementary information be readily available

Question 6

II. REPORTING ON SUPPLEMENTARY INFORMATION IN RELATION TO THE FINANCIAL STATEMENTS AS A WHOLE - Management Responsibility

Answer 6

1- Prepare the information in line with applicable criteria

2- Provide the auditor with Rep letter

3- Present the information with the audited financial statements or make the audited financial statements readily available to the intended users of the supplementary information by the issuance date of the supplementary information and auditor’s report.

Question 7

II. REPORTING ON SUPPLEMENTARY INFORMATION IN RELATION TO THE FINANCIAL STATEMENTS AS A WHOLE - Audit Procedures

Answer 7

1- Inquiry
2- ensure compliance with the applicable criteria.
3- Obtain an understanding of the methods used
4- Compare and reconcile the info. to the audited FSs
5-Evaluate the appropriateness and completeness
6- Obtain rep. letter from management

Question 8

III. REQUIRED SUPPLEMENTARY INFORMATION - Auditor responsibilities and procedures

Answer 8

1- Generally, an auditor is not responsible
2- Opinion Not Required

3- Opinion Permitted , auditor should follow in Item II

4- Inquire of management about the methods used

5- Supplementary information is consistent with management’s responses, audited FSs, and other knowledge.

6- Obtain rep Letter from management

Question 9

III. REQUIRED SUPPLEMENTARY INFORMATION - Reporting on Supplementary Information

Answer 9

Report on the FSs should include an explanatory paragraph explain the following circumstances,

  (1) Auditor has applied the required procedures;
  (2) The required supplementary information is omitted
  (3) Some required supplementary info. is missing
  (4) The auditor has identified material departures from the prescribed guidelines
   (5) The auditor is not able to complete the required  procedures; or
  (6) There is substantial doubt about conformance of required supplementary information

Question 10

IV. SEGMENT INFORMATION - Auditor responsibilities

Answer 10

The auditor is responsible for reporting on the fairness of the information presented.

Question 11

IV. SEGMENT INFORMATION - company refuses

to disclose the required segment information

Answer 11

a qualified or adverse opinion

Question 12

IV. SEGMENT INFORMATION - Scope Limitation

Answer 12

a qualified or disclaimer

Question 13

V. CONDENSED FINANCIAL STATEMENTS - main characteristics .

Answer 13

A) Less detail than complete financial statements and do not present all required disclosures under GAAP.

B) They are generally derived from audited FS

C) should be so marked to prevent users from erroneously
assuming that they contain all required disclosures.

Question 14

V. CONDENSED FINANCIAL STATEMENTS - reporting contents

Answer 14

1-That auditor audited and issue opinion on complete FS
2-The date of the auditor’s report on the complete FS
3-The type of opinion expressed
4-Whether information in condensed FSs is fairly stated

Question 15

V. CONDENSED FINANCIAL STATEMENTS - no reference to the auditor’s name shall be allowed for client prepared document unless

Answer 15

1- The audited FSs are enclosed in the same document;
2- The auditor’s report on the condensed FS is included
3- document referred to to information filed with a regulatory agency.

Question 16

VI. SELECTED FINANCIAL DATA - main characteristics .

Answer 16

1- SFD are not a required part of the basic FS

2- SFD are responsibility of management.

Question 17

VI. SELECTED FINANCIAL DATA -Reporting

Answer 17

1- REPORT should be limited to data that are derived from audited FSs

2- Report should specifically identify the data that is being reported on.

3- Generally, an additional paragraph is added to the standard auditor’s report

4- The auditor must indicate whether the selected financial data is fairly stated,

Question 18

VII. REPORTS ON THE APPLICATION OF ACCOUNTING PRINCIPLES - Reporting Accountant

Answer 18

A reporting accountant is an accountant in public practice who prepares a written report (or provides oral advice) on The application of accounting principles to specific transactions

Question 19

VII. REPORTS ON THE APPLICATION OF ACCOUNTING PRINCIPLES - Procedures

Answer 19

1- Understand Nature of the transaction(s),
2- Review applicable GAAP
3- Consult with other professionals

Question 20

VII. REPORTS ON THE APPLICATION OF ACCOUNTING PRINCIPLES - Report

Answer 20

1- A brief description of the nature of the engagement
2- Statement that the engagement performed accordance with AICPA standards
3- Description of the transaction including assumptions
4- Statement describe used accounting principle
5- Statement that the preparers of FS are responsible for proper accounting treatment
6-Restricting use to specified parties

Question 21

VIII. REPORTING ON FINANCIAL STATEMENTS PREPARED FOR USE IN OTHER COUNTRIES - Distribution Outside U.S. Only

Answer 21

The auditor may use either The report of the other country or U.S.-style report modified to report on the accounting principles of another country

Question 22

VIII. REPORTING ON FINANCIAL STATEMENTS PREPARED FOR USE IN OTHER COUNTRIES -More than Limited Distribution within the U.S

Answer 22

The Report should be the U.S. standard report modified as appropriate for a departure from U.S. GAAP. This report may include a separate paragraph expressing an opinion on conformity with the GAAP of the
other country.