Assurance - Concluding and Reporting - Reporting Consideration Flashcards
Explain what an independent auditor is to do with reporting and examples of special purposes
- The independent auditor is to report and communicate on fair representation of F/S
- Will be dated no earlier than when the auditor gain SAAE
Some general purpose: CAS 700 - Forming on opinion
CAS 800 - special consideration
CAS 805 - special consideration - Audit of F.S prepared in accordance with applicable purposes
CAS 810 - Engagement to report on summary
Provide what CAS standard to provide the auditor’s opinion and explain the criteria
CAS 700 - explains the auditor’s opinion to conclude the F/S as a whole is free from material misstatement
Is to determine: - Whether SAAE has been obtained
- Whether uncorrected misstatements are material, either individually or in aggregate
- Whether is F/S are prepared, all material respected in accordance with requirements applicable to the reporting framework
Provide what CAS standard for modification of opinion
CAS 705 - The modification of auditor opinion & based on two types
1. Limitation to scope - circumstances beyond client control
- Circumstances relating to the nature of the timing of audit work
-Limitation imposed by management
Pervasive - used context of misstatement to describe the effect on the F/S of misstatement or the possible effect on F/S misstatement
- Material misstatement on F/S. GAAP departure prepared not in compliance can be due to monetary
- Management did not follow the correct accounting in financial reporting error or inadequate is applicable
- Management failed to disclose essential information as required by applicable FRF.
What is determined in the decision tree
Is the misstatement due to
1.GAAP departure -
- material only - Qualified opinion
-material and persuasive - Adverse opinion
2. Scope limitation
- Material only - Qualified
- Material and persuasive - Disclaimer
What CAS standard explains the communication of key matters
CAS 701 - applies to the audit of a complete set of general-purpose
- Auditor is required by law and regulation to communicate KAM in IAR, based on professional judgment
- Auditor report use subheading is key audit matter
What CAS system communicates the emphasis on matter
CAS 706
- Sending auditors it is necessary to draw the used attention to matter presented or disclosed in F/S according to professional judgment
- Can choose to include in IAR, may be presented directly before KAM based on professional judgment
What is included in other matters
CAS 706
- IN IAR that refers to matters other than those presented or disclosed
- The auditor is unable to draw from engagement even if there is a scope limitation
- Required by law- regulation or general practice
What other reporting consideration is used for association
Association - another reporting consideration - CSOA 5000
- Is involvement with entity or information relating
- Can arise from - Auditor performing services, auditor requested for consent orally or in writing to use the communication
- If auditor is asked to provide F.S in another language or other communication, needs to provide
1. Obtain an understanding of the context in which auditor communication or more intended to be used
2. Obtain consent of basis - determine whether the information being reported is accurately reproduced
3. Determine if additional information reported in another language includes some information
What is to include with communication to management & TWCG
- Information on auditor independence under listing entities
- Significant timing from audit
- Significant deficiencies in internal control
- Material in with law/ regulation
- Communicate findings such as accounting policy, estimate, disclosure
Deficiencies - CAS 265 - communicate based on management letter
- Address to management of appropriate level and timely basis
