Chapter 1 Section 6: Reporting on Other Information Flashcards
What if the document containing the financials contains information that is inconsistent and the information requires revision?
Include in the auditor’s report an other-matter paragraph describing the material inconsistency
Withhold the use of the report
Withdraw from the engagement and consult with legal counsel
What if the document containing the financials contains information that is a material misstatement of fact?
Notify those charged with governance
What are your objectives when reporting on supplementary information?
Evaluate the presentation in relation to the financials
Report on whether it is fairly stated in relation to the financials
What must management agree to take responsibility for regarding supplementary information?
Prepare the information in accordance with applicable criteria
Provide the auditor with written representations related to the information
Include the auditor’s report on the supplementary info in any document that contains the info
Present the info with the audited financials or make them readily available to the intended issuers
What are the audit procedures that must be undertaken for supplementary information?
Inquire of management
Determine whether the form and content of the information complies with the applicable criteria
Obtain an understanding of the methods used to prepare the info
Compare and reconcile the info to the audited financials
Inquire regarding any significant assumptions
Evaluate the appropriateness and completeness of the info
Obtain written representations from management regarding the info
If you are reporting for a nonissuer, where can the auditor’s report on supplementary info be?
Other-matter paragraph of separate report
What if you express a qualified opinion on the financials, and it also applies to the supplementary info?
Describe its impact on the supplementary info and also have a qualified opinion on the supplementary info
What if you expressed an adverse or disclaimer of opinion on the financials?
You can’t give an opinion on the supplementary information
If you are reporting for an issuer, where can the auditor’s report on supplementary information be?
In the report on the financials or a separate report
What should be the date on the report for the supplementary information?
Not earlier than the financial report date or the date they obtained sufficient appropriate audit evidence for the supplementary info
What if there is a material misstatement in the supplementary info?
Describe it and express a qualified or adverse opinion
What if there is an inability to obtain sufficient appropriate audit evidence for the supplementary info?
Disclaim it and describe the reasons why
What procedures should the auditor perform for required supplementary information?
Limited procedures:
Inquire of management
Determine if it is consistent with management’s responses
Obtain written management representations regarding the required supplementary information
What circumstances should be laid out in an other-matter paragraph regarding required supplementary information?
Say the required info is included and you have applied the required procedures
Report any deficiencies and omissions
What should be included in the report on application of GAAP?
Describe the nature of the engagement
State that it was performed in accordance with standards
Identify the company, transactions, facts, circumstances, and assumptions, and a statement about the source of the info
Describe the application of the standards to the transactions and a description of reasons for your conclusion
State that management is responsible for financials
State that any difference in anything may change the report
A separate paragraph restricting use
If you’re not independent, say so
