AU 23 - Special reports and other engagements Flashcards
What are special purpose FS?
FS created for a specific purpose - i.e. joint venture. and NOT following GAAP.
Planning considerations - SP FS
- obtain understanding of FS purpose
- obtain understanding of intended users
- obtain understanding of management decision to adopt framework
Reporting considerations - SP FS
- must describe purpose of statements and list intended users in report.
- evaluate if the FS meet the framework.
- emphasis of matter to show that FS created for special purpose and no other matter.
Level of assurance - SP FS
audit - reasonable
review - limited
Single account planning considerations
is it practical?
Level of assurance - single account
reasonable - audit
limited - review
Compliace planning considerations
Only if practitioner is reporting on matters within their competence
Compliance reporting considerations
- attestation - is management compliance fairly stated?
- direct - has entity complied with requriements?
Level of assuarance - compliance
reasonable - audit
limited - review
Report on controls at service organization - two types of reports
Type 1 - attests to design and implementation of service org systems of controls at a specific point in time.
Type 2 - attests to design, implementation and ongoing operating effectiveness of controls.
Type of assurance - controls at service org
Reasonable
When should a practionoer accept to report on summary FS?
When they have audited the full FS
What is a performance audit?
A value-for-money audit. Often used in public sector.
Types of audit that provide no assurance
Agreed-upon procedures engagements
Compilations
Reports on application of accounting principles
