Aud-Lesson 8_Remaining

Question 1

How is supplementary information treated in the audit?

Answer 1

It only needs to be read for consistency. If consistent, don’t mention it in the report. If it is inconsistent, add an explanatory paragraph.

Question 2

What is an agreed upon procedure?

Answer 2

Agreed Upon Procedures Report is limited use report that is not intended for anyone other than specified parties.

Question 3

What is a special report?

Answer 3

A report that is not GAAP and not supposed to be GAAP, and is usually for F/S that are in conformity of a special purpose framework

Question 4

What is the format of the Special Purpose framework report?

Answer 4

Intro
Management's Responsibility
Auditor's responsibility
Opinion
Emphasis of a Matter (Basis of accounting)

Question 5

Can reviews be done on prospective statements?

Answer 5

No, no, and no.

Question 6

What two caveats need to be included in the report for propespective statements?

Answer 6

That results may not be achieved

That there is no responsibility to update

Question 7

What is an attestation?

Answer 7

An engagement in which the accountant expresses a written conclusion about the relaibility of a written assertion by another party.

Question 8

Which outside entities receive reports from an Agreed upon procedures engagement?

Answer 8

None. Agreed upon procedures are limited use always.

Question 9

What kind of assurance is given for a review?

Answer 9

Limited or negative assurance