chap 14.10 other engmnt Flashcards
other enngmnt
a practitioner can take audit review and compile engnmt of Financial information and variety of tax enggmnt
clients need may require adtr to provide opinion on financial and non financial information other than general purpose of FS information
other enngmnt list
- Reports in accordance with a special purpose framework
- reports on a component of the FS
- review enngmnt
- review enngmnt on interim FS
- assurance enngmnt
6.compliance enngmnt
7.reporting on controls
- reporting on supplementary matters
9.reports on the results of applying specified prdrs to Financial info other than FS
- Report on the application of acc principles
- reports used in an offering doc or designated document
- Reports in accordance with a special purpose framework
- terms of contract
2.in accordance with the requirement of a regulation
- tax basis
if adt level assurance is required then enngmnt performed in accordance with CAS 800
If review enngmnt performed the CRSE 2400 is applied
- Reports in accordance with a special purpose framework
1.when accepting this type of enngmnt, assurance provider must understand the nature of agreement or contract, and the form and content of the assurance report and what the FS will be used for and who the users will be
- these are not general purpose FS as they are for a specific user with specific need
- as a result, it will include an emphasis pf matter with a restriction on distribution and the basis of accounting used
2.reports on a component of FS
- A report issued on a single FS line item e.g sales , TR.
- appropriateness when user want some assurance over a particular acc e.g sales to meet reporting need
- an audit or review might be requested to get some assurance
4.to suit the need of the enngmnt, report will be in Accordance to CAS 805 when it relates to adt level assurance and to CRSE 2400 in case of review
5.the practionner must consider the related FS items that may have have an impact on the specific Acc being reported. e.g when sales being reported, must also consider provision for doubtful debt
- must also consider if disclosures are needed to help the users understand the reported items
- basis of accounting should also be included
3.review enngmnt
- provides limited assurance
- must be conducted in accordance with CSRE 2400
- When some assurance is required but not at adt level
3.review enngmnt acceptance
- practionner assess whether there is a rational reason for the review enggmnt if financial reporting framework acceptable , independence and threats to independence.
- ensure that effective safeguards against threats to independence is in place
- when practionner decides to accept review enngmnt, a letter of enggmnt is created or the letter of enngngt is updated when it is a repeat engmnt
3.review enngmnt planning
- determine materiality and no need for performance materiality
2.obtain understanding of entity to identify risk of MM
3.obtain information abt:
-industry and regulatory environment
-entity’s operations(ownership and structure)
-entity obj and strategies
-entity acc systems and records
-entity selection of acc principles
4 when addressing risk and material balances, best to respond with prdrs like analytics and inquiry
- identifies items materially misstated, adtr should plan more work in these areas
- all misstatements should be accumulated and discussed with mgt
3.review enngmnt completion
- work should be documented and adtr assess evidence to determine appropriate report to issue
- review report may be modified or unmodified
3.scope of limitation then qualified or disclaimer of conclusion issued
- MM can lead to qualified or adverse conclusion
5.practionner should use professional judgement and maintain professional scepticism th’‘out whole adt enngmnt
- review enngmnt should be dated those charged with governance take responsibility for FS
4.review enngmnt for interim FS
- this is to report to the adt committee whether any material modification should be to FS to be in accordance with applicable financial reporting framework
- Assurance engmnt
2 types:
-assurance engmnt
-direct engmnt
- assurance engmnt
practionner providing opinion after evaluation a subject matter against a a statement made by mgt
e.g compliance with lease agreement - direct engmnt
practionner evaluate a subject matter against an applicable criteria developed by practitioner and should be accepted by mgt
e.g performance adt regarding efficiency, effectiveness and economy of the entity activities
can provide either limited or reasonable assurance
- Assurance engmnt- acceptance
- conduct client acceptance prdrs
- adtr needs to assess if entity has the knowledge to conduct this type of enggmnt as it does not depend on historical data
- when choosing the criteria, should ensure that acceptable criteria exist and that mgt accepts that criteria is acceptable .
- this should be documented in the enngmnt letter and should be obtained prior to start of engirt
- Assurance engmnt- performance
- well planned and use of professional judgement and professional scepticism
- first prdr is to assess materiality and identifying areas of MM and plan accordingly to reduce engmnt to an acceptably low level
- when seeking reasonable assurance, gain understanding of internal controls.
- when seeking limited assurance, gain understanding of processes used to prepare information
- al work should be documented and working paper should include sufficient appropriate evidence to support report issued
- Assurance engmnt- completion
- should obtain mgt representation letter and perform subsequent event prdrs
- report could include emphasis of matter or could be modified
3.in case of limited assurance, should clearly state that prdr not performance to adt level thus limited assurance is provided.
7.reporting on controls
- some entities outsource some activities to a service provider e.g payroll .
- these items have an impact on FS
- Practitioner requires to obtain a report about that service provider controls to gain understanding of their internal control
- provide assurance abt the effectiveness of the processes of that service provider
- report issued is in accordance with CSAE 3000
