Other Info, Supp Info, and Required Supp info

Question 1

Examples of Other Info

Answer 1

• Financial summaries and highlights, management reports on operations, employment data, financial ratios, selected quarterly data, names of officers and directors

Question 2

Other Info: If Material Inconsistencies are found Prior and After, what does the auditor do if management makes revisions/does not make revisions

Answer 2

Prior: makes revisions - good
Prior: Does not make revisions
- inform those charged with governance and (a) include an other-matter paragraph to the auditor’s report, (b) withhold the auditor’s report, or (c) withdraw from the engagement (when permitted)

After: Makes
- review steps
After does not
- inform those charges with goverance

Question 3

Reasons for choosing to disclaim an opinion on other information

Answer 3

The auditor is not required to reference the other info, but may include a disclaimer or opinion on the info to avoid confusion

Question 4

Procedures to perform if Other information is included in report

Answer 4

• read the other information to determine that it is consistent with the audited financial statements

Question 5

Supp Information: two options for reporting

Answer 5

1. combined with the FS, include an other matter paragraph

2. separate - entirely separate report. A different opinion may be used

Question 6

When is the auditor prohibited from reporting on Supp information

Answer 6

when an adverse or disclaimer of opinion has been issued on the FS

Question 7

Define Required Supp Infor

Answer 7

Information that a designated accounting standard setter requires to accompany an entity’s basic financial statements (the information is not part of the basic financial statements, but authoritative guidelines for measurement and presentation have been established)

Question 8

Reporting Requirements for Required Supp Info

Answer 8

Other matters paragraph

Note: The opinion on the FS is not affected by the RSI

Question 9

Define Other Information

Answer 9

Information other than the financial statements and the auditor’s report that is included in a document containing audited financial statements and the auditor’s report (can be financial and nonfinancial information, but excludes required supplementary information)

Question 10

Procedures performed for RSI

Answer 10

The auditor should apply certain limited procedures to the required supplementary information and report deficiencies in, or omissions of, such information.