Reporting on the Summary Financial Statements Flashcards
What are summary financial statements?
Historical financial information that is derived from financial statements but that contains less detail than the financial statements, while providing a structured representation consistent with that provided by the financial statements.
T/F: The auditors must have been engaged to audit the financial statements as w hole in order to accept an engagement to report on summary financial statements?
TRUE
Summary of financial statements MUSt be accompanied by audited financial statements. They must be READILY AVAILABLE.
TRUE!
They cannot be made “available upon request”… that doesn’t count
If available on the entity’s website, that is okay.
T/F: The financial statements summary needs to be adequately disclosed?
TRUE- they have to be adequately disclosed.
The summary needs to be compared by the auditor to the complete set of audited financial statements?
TRUE- they have to be compatible with the applied criteria. Do they contain enough disclosure.
The summary should not be misleading to the intended user
T/F: The auditor should issue an opinion on the summary of financial statements?
TRUE
You can either have an UNMODIFIED OR ADVERSE OPINION (ONLY)
UNLESS!! The audited financial statements are adverse or have a disclaimer of opinion, you do not issue an opinion on the summary of financial statements