A1 - Audited Financials - Reporting on Other Info

Question 1

When financial statements are prepared in accordance with a financial reporting framework generally accepted in the parent’s country are for use only in that country, the auditor may report using:

Answer 1

Either a U.S. style report modified to report on the financial reporting framework of the parent’s country or the report form of the parent’s country.

Question 2

If management (of a governmental body) declines to present supplementary information required by the Governmental Accounting Standards Board (GASB), the auditor should issue a(an):

Answer 2

Unmodified opinion with an other-matter paragraph.

Question 3

What is an auditor’s responsibility for supplementary information which is outside the basic financial statements but required by GAAP?

Answer 3

The auditor should apply certain limited procedures to the supplementary information.