PCAOB on auditing supplemental information

Question 1

When is the PCAOB auditing standard entitled Auditing Supplemental Information Accompanying Financial Statements, applicable?

Answer 1

It applies when reporting on supplemental information in connection with financial statements audited under PCAOB auditing standards, whether required by regulatory authorities or provided voluntarily.

Question 2

What are the two primary matters that the auditor should evaluate when engaged to report on supplemental information accompanying the financial statements of an issuer?

Answer 2

1. )Whether the information is fairly stated in relation to the financial statements
2. )Whether the information is presented in conformity with regulatory requirements (or other applicable criteria)

Question 3

When the auditor issues an adverse opinion (or a disclaimer of opinion) on an issuer’s financial statements, how is the opinion on the supplemental information affected?

Answer 3

The auditor should also express an adverse opinion (or disclaimer of opinion) on the supplemental information.

Question 4

When the auditor issues a qualified opinion on an issuer’s financial statements, how is the opinion on the supplemental information affected?

Answer 4

The auditor should express a qualified opinion on the supplemental information only if the basis for that qualification also applies to the supplemental information.

Question 5

What is the auditor’s basic objective when reporting on supplemental information under PCAOB auditing standards?

Answer 5

To obtain sufficient appropriate audit evidence to express an opinion on whether the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole