Audit Reports - Teleka Flashcards
When can an accountant decline to issue a compilation report?
Each page of F/S are marked to restrict use; Engagement letter is used to document understanding
When auditing single F/S:
Auditor should determine materiality for single F/S; Auditor should perform procedures on interrelated items; Engagement can be performed as a separate engagement or in conjunction with audit of complete F/S
Are client rep letters required in compilations?
No
Trend Analysis
Examines relationships between income statement accounts
Ratio Analysis
Examines relationships between balance sheet accounts
Are client rep letters required in reviews?
Yes
Assurance provided by Review
Limited / Negative Assurance
Assurance provided by Compilation
No Assurance
Assurance provided by Audit
Positive Assurance
Assurance provided by Agreed Upon Procedures
No Assurance
Assurance provided by Examination
Positive Assurance
When is independence Required
Independence is required for all services except a compilation
When the prior period has been audited, the accountant should issue the current period compilation or review report, and any additional paragraph should indicate:
That prior period statements were audited; The date of the previous report(s); The opinions expressed, and, if other than unmodified, the reasons for the modification; and That no auditing procedures have been performed since the previous report date.
Assurance provided by a comfort letter
Negative insurance on interim information (Capsule Info)
