Supplementary Information Related to Financial Statements Flashcards
An auditor is engaged to report on selected financial data that are included in a client-prepared document containing audited financial statements. Under these circumstances, the report on the selected data should
State that the presentation is a comprehensive basis of accounting other than GAAP.
Restrict the use of the report to those specified users within the entity.
Be limited to data derived from the entity’s audited financial statements.
Indicate that the data are subject to prospective results that may not be achieved.
Be limited to data derived from the entity’s audited financial statements.
This is correct as auditors may opine on whether supplementary information is properly prepared in circumstances which include it being derived from the underlying accounting and other records.
If supplementary information in a document accompanying the basic financial statements has been subjected to auditing procedures, the auditor may include in the auditor’s report on the financial statements an opinion that the accompanying information is fairly stated in
Accordance with generally accepted auditing standards.
Conformity with generally accepted accounting principles.
All material respects in relation to the financial statements as a whole.
Accordance with attestation standards expressing a conclusion about management’s assertions.
All material respects in relation to the financial statements as a whole.
When an auditor has been engaged to determine whether supplementary information is fairly stated in relation to the financial statements, the auditor may include in the auditor’s report on the financial statements an opinion that the accompanying information is fairly stated in all material respects in relation to the financial statements as a whole.
Investment and property schedules are presented for purposes of additional analysis in an auditor-submitted document. The schedules are not required parts of the basic financial statements, but accompany the financial statements.
When reporting on such supplementary information in relation to the financial statements as a whole, the measurement of materiality is the
Same as that used in forming an opinion on the basic financial statements taken as a whole.
Lesser of the individual schedule of investments or schedule of property, taken by itself.
Greater of the individual schedule of investments or schedule of property, taken by itself.
Combined total of both the individual schedules of investments and property, taken as a whole.
Same as that used in forming an opinion on the basic financial statements taken as a whole.
The audit of supplementary information in relation to the financial statements as a whole measures materiality just like that used in forming an opinion on the basic financial statements.
When an accountant compiles a client’s financial statements accompanied by supplemental information, which of the following is a required element of the accountant’s separate report on the supplemental information?
A statement that the information has been compiled from information that is the representation of management without audit or review.
A list of the procedures performed by the accountant during the compilation.
A statement that the accountant did not become aware of any material modifications that should be made to the information.
A confirmation of the independence of the accountant with respect to the information presented.
A statement that the information has been compiled from information that is the representation of management without audit or review.
CORRECT! The accountant’s separate report on the supplementary information should include a statement that the supplementary information is the responsibility of management and was derived from and relates directly to the underlying records used to prepare the financial statements. The report should further state that the supplementary information was not audited or reviewed (since it was compiled) and that no assurance of any type is provided.
