Single FS Audit (special element, account, items)

Question 1

If the specific element is based on stockholders’ equity

Answer 1

The auditor should obtain sufficient appropriate evidence to enable the auditor to express an opinion about financial position. (This effectively means that the auditor should have audited the whole balance sheet in order to report on an element based on stockholders’ equity.)

Question 2

If the specific element is based upon the entity’s net income or the equivalent

Answer 2

The auditor should obtain sufficient appropriate evidence to enable the auditor to express an opinion about both financial position and results of operations. (This effectively means that the auditor should have audited the complete set of financial statements in order to report on an element based on net income.)

Question 3

If the auditor is engaged to audit a single financial statement or a specific element of a financial statement in connection with an audit of the complete set of financial statements

Answer 3

The auditor should (1) issue a separate report and express a separate opinion for each engagement, and (2) indicate in the report on a specific element of a financial statement the date of the auditor’s report on the complete set of financial statements and the nature of that opinion under an appropriate heading