Other Types of Reports

Question 1

NEW CARD

A report on agreed-upon procedures in the form of procedures and findings should contain

Answer 1

A statement of restrictions on the use of the report
A statement that the sufficiency of the procedures is solely the responsibility of the specified parties
A statement that the practitioner was not engaged to and did not conduct an examination of the subject matter, the objective of which would be the expression of an opinion (therefore, a disclaimer of opinion is not appropriate).

Question 2

What are the General Standards for SSARS?

Answer 2

AR-C 60

1. FS are Mngmt’s statements
2. Ethical judgement
3. Professional judgement
4. Conduct of the engagement in accordance w/ SSARS
5. Engagement level quality control

Question 3

Preparation of FS

Answer 3

AR-C 70
Signed engagement letter
Independence not required
Prepare in acc w/ AFRF
Nonattest engagement
No assurance
No opinion, no report

Question 4

Compilations

Answer 4

AR-C 80
Signed engagement letter
Apply expertise to assist Mgnmt in presenting FS w/ out giving any assurance
Read the FS
If not independent add sentence
Attest engagement
No opinion 
Can perform prospective, must disclose assumptions

Question 5

Unmodified compilation report

Answer 5

Mngmt is responsible for FS
Accountant did not audit or review FS
Not required to verify accuracy or completeness
Does not express opinion, conclusion, provide assurance

Question 6

Reasons for modified compilation reports

Answer 6

Special purpose framework
Lack of independence
Omission of substantially all disclosures req by AFRF (add limited use sentence)
Known departures from AFRF

Question 7

Reviews

Answer 7

AR-C 70
Signed engagement letter
Mgt Rep Letter
Obtain limited assurance primarily through inquiry and AP (explicitly stated)
Understand AFRF and policies, industry/entity
Must be independent 
Attest engagement
No opinion
Requires communication w/ TCWG

Question 8

Unmodified review report

Answer 8

Intro- states FS were reviewed, consists of AP/inquiries, less in scope than an audit, no opinion expressed
Mngmt responsibility- Resp for prep/fair pres of FS in accord w/ AFRF; Resp for DIM of IC
Auditor’s responsibility- Resp for conducting in accord w/ SSARS>ARSC; req to perform proc to obtain limited assurance/aware of MM to be made
Conclusion- Not aware of MM needed to be in accord w/ GAAP

Question 9

EOM and OM paragraphs in review reports

Answer 9

EOM is for something that’s properly accounted for and disclosed
OM you don’t have to put but choose to make clearer to the reader
SPF - basis of accounting paragraph goes after the conclusion (“draw attention to Note X…”)

Question 10

An auditor may report on condensed financial statements that are derived from complete audited financial statements if the…

Answer 10

Auditor indicates whether the information in the condensed financial statements is fairly stated in all material respects

Question 11

When an accountant examines a financial forecast that fails to disclose several significant assumptions used to prepare the forecast, the accountant should describe the assumptions in the accountant’s report and issue:

Answer 11

An adverse opinion

AT-C 305.35

Question 12

Which characteristics of prospective financial statements would require the practitioner to include a paragraph that restricts the use and distribution of the report?

Answer 12

Financial projection (forecasts may be generally distributed)