A2 (4) - Reporting on Comparative Financial Statments

Question 1

PERIOD(S) IN QUESTION - Current Period Compiled and Prior Period Reviewed (service downgrade)

Answer 1

1). Additional Paragraph to current period, This description should include the date of the original report and a statement that no review procedures were performed in connection with the review engagement after the date of the review report

2). Reissue the prior period review report - If a combined report (current period with prior period )is used (item a above), the report should state:
“No review procedures were performed in connection with the review engagement after the date of the review report

Question 2

PERIOD(S) IN QUESTION - Current Period Reviewed and Prior Period Compiled (service upgrade)

Answer 2

The report on the prior period(s) should be updated and issued as the last paragraph of the current period’s report.

Question 3

OTHER REQUIREMENTS- Columnar Form

Answer 3

Financial statements that have not been audited, reviewed, or compiled should not be presented in columnar form with financial statements on which an accountant has reported.

Question 4

OTHER ACCOUNTANTS INVOLVED IN PRIOR PERIODS -

Answer 4

1) , Generally Predecessor accountants are not required to reissue their report on prior periods
2) . .

Question 4

OTHER REQUIREMENTS - Omission of Required Disclosures

Answer 4

NO report on comparative financial statements when statements for one or more, but not all, of the periods presented omit substantially all of the disclosures required by GAAP.

Question 5

OTHER REQUIREMENTS - Information Affecting Previous Reports

Answer 5

A separate paragraph should be added to the prior period report that states:

  1. The date of the original report;
 2. That the statements of change in prior period.
 3. The reason for the change in the original report

Question 7

OTHER ACCOUNTANTS INVOLVED IN PRIOR PERIODS- If the predecessor accountants decide to reissue their report, they should

Answer 7

a. check the appropriateness of the report Considering the current presentation of statements for the prior period based on subsequent events; and In light of required modifications that may be necessary in their report.

Question 8

OTHER ACCOUNTANTS INVOLVED IN PRIOR PERIODS - Procedures should be taken If the predecessor accountants decide to reissue their report,

Answer 8

1) . Read the statements and the report of the current period
2) . Compare the prior period statements with those issued previously and currently
3) . Obtain a letter from the successor accountants staling that they are not aware of any relevant information that might have a material effect on the prior period statements

Question 9

OTHER ACCOUNTANTS INVOLVED IN PRIOR PERIODS - Predecessor’s Report Not Reissued

Answer 9

Make reference to the report of the predecessor in the current report; or
1, statement that the prior periods were compiled or reviewed by othe accountants (who are generally not named, unless the predecessor’s and successor’s practices are combined);
2. The date of their report;
3. A description of the standard form of disclaimer or limited assurance given in the prior report; and
4. A description of any modifications contained in the report

Question 10

REPORTING WHEN ONE PERIOD IS AUDITED - Current Period Unaudited and Prior Period Audited (downgrade in service)

Answer 10

Additional paragraph should include :-

1) . That prior period statements audited;
2. The date of the previous report(s);
3. The opinions expressed,
4) he reasons , if other than unqualified,
5) . That no auditing procedures have been performed since the previous report date

Question 11

REPORTING WHEN ONE PERIOD IS AUDITED - Current Period Audited and Prior Period Not audited (Complied or reviewed ) (service Upgrade)

Answer 11

1) . The unaudited financial statements should be clearly marked.
2) . Reissue the prior period report; or

3). Include an additional paragraph in the current report describing the responsibility assumed for the prior period’s statements.
a service performed in the prior period;
b. The date of the previous report;
c. A description of any modification noted
d. service was less in scope than an audit and did not providethe basis for an opinion; and
e. For public entities, a disclaimer or a description of a review; or
f. For nonpublic entities, a description of the compilation or review.