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information1 that accompanies financial statements2 audited pursuant to Public Company Accounting Oversight Board
("PCAOB") standards. .02 The objective of the auditor of the financial statements, when engaged to perform audit procedures and report on supplemental information that accompanies audited financial statements, is 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. .03 The auditor should perform audit procedures to obtain appropriate audit evidence that is sufficient to support the auditor's opinion regarding whether the supplemental information is fairly stated, in all material respects, in relation to the financial
statements as a whole. The nature, timing, and extent of audit procedures necessary to obtain sufficient appropriate audit evidence and to report on the supplemental information depends on, among other things: The materiality considerations relevant to the information presented; Note: When planning and performing the audit procedures to report on supplemental information, the auditor generally should
use the same materiality considerations as those used in planning and performing the audit of the financial statements.3 However, if applicable regulatory requirements specify a lower materiality level to be applied to certain supplemental information, the auditor should use those prescribed threshold requirements
in planning and performing audit procedures for the supplemental information. The evidence obtained from the audit of the financial statements and, if applicable, other engagements by the auditor or affiliates of the firm,4 for the period presented; and Note: The procedures performed regarding
the supplemental information should be planned and performed in conjunction with the audit of the financial statements. For audits of brokers and dealers, the procedures should be coordinated with the attestation engagements related to compliance or exemption reports required by the U.S. Securities and Exchange Commission
("SEC").5 The auditor should take into account relevant evidence from the audit of the financial statements and, for audits of brokers or dealers, the attestation engagements, in planning and performing audit procedures related to the supplemental information and in evaluating the results of the audit procedures
to form the opinion on the supplemental information. .04 In performing the audit procedures on supplemental information, the auditor should: .05 The auditor should obtain written representations from management, including:
Evaluation of Audit Results.06 To form an opinion on the supplemental information, the auditor should evaluate whether the supplemental information, including its form and content, is fairly stated, in all material respects, in relation to the financial statements as a whole, including whether the supplemental information is presented in conformity, in all material respects, with the relevant regulatory requirements or other applicable criteria. .07 The auditor should accumulate misstatements regarding the supplemental information identified during performance of audit procedures on the supplemental information and in the audit of the financial statements.6 The auditor should communicate accumulated misstatements regarding the supplemental information to management on a timely basis to provide management with an opportunity to correct them. 08. The auditor should evaluate whether uncorrected misstatements related to the supplemental information are material, either individually or in combination with other misstatements, taking into account relevant quantitative and qualitative factors. Note: The auditor should evaluate the effect of uncorrected misstatements related to the supplemental information in evaluating the results of the financial statement audit.7 .09 The auditor should evaluate the effect of any modifications to the audit report on the financial statements when forming an opinion on the supplemental information:
Reporting.10 The auditor's report on supplemental information accompanying audited financial statements should include the following:
.11 Unless prescribed by regulatory requirements, the auditor may either include the auditor's report on the supplemental information in the auditor's report on the financial statements or issue a separate report on the supplemental information. If the auditor issues a separate report on the supplemental information, that report should identify the auditor's report on the financial statements. .12 The date of the auditor's report on the supplemental information in relation to the financial statements as a whole should not be earlier than:
.13 The following is an example of an auditor's report on supplemental information when included in the auditor's report on the financial statements:
.14 If the auditor determines that the supplemental information is materially misstated in relation to the financial statements as a whole, the auditor should describe the material misstatement in the auditor's report on the supplemental information and express a qualified or adverse opinion on the supplemental information. .15 If the auditor is unable to obtain sufficient appropriate audit evidence to support an opinion on the supplemental information, the auditor should disclaim an opinion on the supplemental information. In those situations, the auditor's report on the supplemental information should describe the reason for the disclaimer and state that the auditor is unable to and does not express an opinion on the supplemental information. Note: If the supplemental information consists of two or more schedules, and the auditor is able to obtain sufficient appropriate audit evidence to support an opinion on some but not all schedules, the auditor may express an opinion on only those schedules for which he or she obtained sufficient appropriate evidence but should disclaim an opinion on the other schedules. Appendix A - Definitions.A1 For purposes of this standard, the term listed below is defined as follows: .A2 Supplemental Information - Refers to the following information when it accompanies audited financial statements:
What is an auditor's responsibility when engaged to report on supplementary information accompanying the basic financial statements?The auditor should report on the accompanying information in either (1) an other-matter paragraph following the opinion paragraph in the auditor's report on the financial statements or (2) in a separate report on the supplementary information.
What is an auditor responsibility for supplementary information?What is an auditor's responsibility for supplementary information which is outside the basic financial statements, but required by the FASB? *The auditor should apply certain limited procedures to the required supplementary information, and add an other-matter paragraph to the financial statement audit report.
What is the auditors responsibility for reporting on other information accompanying financial statements?Auditors are required to report on other information only if it is misstated or inconsistent with the financial statements. C) Auditors are required to provide reasonable assurance with respect to whether the other information is presented in accordance with generally accepted accounting principles.
What should be included in the auditor's report on supplemental information?A description of any significant assumptions or interpretations underlying the measurement or presentation of the supplemental information, and a statement that management believes that such assumptions or interpretations are appropriate.
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