A1 - Reporting on other information

Question 1

An auditor may be engaged to report on supplementary information in relation to the F/S as a whole. The auditor has two objectives in such engagements:

Answer 1

1. To evaluate the presentation of the supplementary information in relation to the F/S as a whole; and
2. To report on whether the supplementary information is fairly stated, in all material respects, in relation to the F/S as a whole.

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Question 2

The auditor has ___ responsibility to consider subsequent events with respect to supplementary information.

Answer 2

no

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Question 3

When the auditor’s report on the audited F/S contains an adverse or a disclaimer of opinion and the auditor has been engaged to report on supplementary information, the auditor is ____.

Answer 3

prohibited from expressing an opinion on the supplementary information.

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Question 4

If the auditor determines that the supplemental information is materially misstated in relation to the F/S as a whole, the auditor should ___.

Answer 4

Describe the material misstatement in the auditor’s report on the supplemental information and express a qualified or adverse opinion on the supplemental information.

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Question 5

If the auditor is unable to obtain sufficient appropriate audit evidence to support an opinion on the supplemental information, the auditor should ____.

Answer 5

Disclaim an opinion on the supplemental information, describe the reason for disclaimer and state that the auditor is unable to and does not express an opinion on the supplemental information.

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Question 6

The auditor should perform the following procedures on required supplementary information:

Answer 6

LIMITED PROCEDURES

1. Inquire of management about methods used to prepare the required supplementary information.
2. Determine if the supplementary information is consistent with management’s responses, audited F/S and other knowledge.
3. Obtain written management representation regarding the required supplementary information.

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Question 7

A reporting accountant is ___.

Answer 7

Is an accountant in public practice, other than the continuing accountant, who prepares a written report (or provides oral advice) on:

• The application of the requirements of an applicable financial reporting framework to a specific transaction or;
• The type of report that may be rendered on a specific entity’s F/S.

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Question 8

The reporting accountant (may or may not?) report on the application of accounting principles to a hypothetical transaction (a transaction not involving facts or circumstances of a specific entity).

Answer 8

may not

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Question 9

Is the reporting reporting accountant required to be indepedent of the entity ?

Answer 9

No

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Question 10

Is reporting accountant’s report restricted?

Answer 10

Yes, the report should include a separate paragraph at the end of the report restricting its use to specified parties.

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Question 11

Reporting - Distribution Outside the U.S

INFORMATION CARD

Answer 11

For distribution only outside the U.S. or with limited distribution to specific knowledgeable parties within the U.S.), the auditor may use either:

1. The report of the other count or the report set out in the ISAs if applicable, provided that:
   
   • a. the report would be issued by auditors in the other country in similar circumstances;
   • b. the auditor has obtained sufficient appropriate audit evidence to support the statements in the report; and
   • c. the auditor has complied with the reporting standards of that country and identified the other country in the report.
2. A U.S. form of report that reflects that the F/S being reported on have been prepared in accordance with a financial reporting framework generally accepted in another country, including:

• all the elements required in a U.S. form report; and
• a statement that refers to the note in the financial statements that describes the basis of presentation of the financial statements, including the country of origin.

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Question 12

Reporting - Distribution in the U.S.

If the F/S are also intended for use in the U.S., the audited should reporting using a U.S. form report with an emphasis of matter paragraph that:

Answer 12

1. Identifies the financial reporting framework
2. Refers to the note in the F/S that describes the framework; and
3. Indicates that the framework differs from accounting principles generally accepted in the United States of America.

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