Gleim 17
Capsule information
(1) unaudited summarized IFI for periods subsequent to the periods covered by the audited statements or (2) unaudited IFI in the securities offering.
The report form and content of the other country (or, if applicable, as set forth in the ISAs).
A U.S. form of report reflecting that the statements reported on have been prepared in accordance with a reporting framework generally accepted in another country. (Study Unit 15 contains the format of the basic U.S. report.) The introductory paragraph should refer to the note to the statements that describes their basis of presentation, including identification of the country of origin of the accounting principles.
In connection with a proposal to obtain a new client, an accountant in public practice is asked to prepare a written report on the requirements of an applicable financial reporting framework to a specific transaction. The accountant's report should include a statement that
Any difference in the facts, circumstances, or assumptions presented may change the report.
Interium FS /inquiry , analytics
Auditor's Review Report on Interim Financial Information [Appropriate Addressee] We have reviewed the accompanying [describe the interim financial information or statements reviewed] of ABC Company and subsidiaries as of September 30, 20X1, and for the three-month and nine-month periods then ended. Management's Responsibility The Company's management is responsible for the preparation and fair presentation of the interim financial information in accordance with [identify the applicable financial reporting framework, for example, accounting principles generally accepted in the United States of America]; this responsibility includes the design, implementation, and maintenance of internal control sufficient to provide a reasonable basis for the preparation and fair presentation of interim financial information in accordance with the applicable financial reporting framework. Auditor's Responsibility Our responsibility is to conduct our review in accordance with auditing standards generally accepted in the United States of America applicable to reviews of interim financial information. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial information. Accordingly, we do not express such an opinion. Conclusion Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in accordance with [identify the applicable financial reporting framework, for example, accounting principles generally accepted in the United States of America]. Auditor's signature Auditor's city and state Date of the auditor's report
When an independent auditor's report based on a review of interim financial information is presented in a registration statement, a prospectus should include a statement about the auditor's involvement. This statement should clarify that the
Auditor's review report is not a part of the registration statement within the meaning of the Securities Act of 1933.
When an auditor's report is incorporated by reference in an SEC registration statement, a prospectus that includes a statement about the auditor's involvement should refer to the auditor as
Expert in auditing and accounting.
In a comfort letter, the auditor should most likely avoid using which of the following terms to describe the work performed?
Made a general review.
Other -Matter /Sub
Other Matter [Identify the applicable financial reporting framework (for example, accounting principles generally accepted in the United States of America)] require that the [identify the required supplementary information] on page XX be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by [identify the designated accounting standards setter] who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Additional FS
Other info -read. Add an other-matter paragraph to audit report only if other information is not consistent with financial statements Required Sub (oil, gas reserve)-limit procedure, Add an other-matter paragraph to audit report describing the auditor's responsibility Sub relation to statements -audit, Refer to and report on fair presentation in audit report Summary Financial Statements/Summary of financial results consistensy with FS/In a separate report, refer to audit report and state opinion about consistency with complete audited financial statements
Qurtery Summary
Review report Report expressing an opinion on consistency.
When audited financial statements are presented in a document containing other information, the auditor
Should be aware of whether the other information contains a material misstatement of fact.
Filling with SEC
The SEC requires that registrants obtain reviews of unaudited interim financial information by their independent auditors prior to filing quarterly reports in Form 10-Q or Form 10-QSB. But the SEC does not require an entity to include a review report on unaudited interim information in the registration statement if it does not state that the information has been reviewed. Subsequent event/ effective date of the registration statement.
All of the following statements about financial statements prepared in accordance with a reporting framework generally accepted in another country and intended for use in the U.S. are true except
The auditor expresses an opinion on whether the financial statements are presented fairly within the framework of the U.S.
FS/ accepted in another country
The auditor understands those standards The auditor uses the guidance in this standard for reporting A U.S. form of report reflecting that the statements reported on have been prepared in accordance with a reporting framework generally accepted in another country. (Study Unit 15 contains the format of the basic U.S. report.) The introductory paragraph should refer to the note to the statements that describes their basis of presentation, including identification of the country of origin of the accounting principles. The report form and content of the other country (or, if applicable, as set forth in the ISAs).
pro forma finance info
The auditors should not comment on this information unless they have acquired the appropriate level of knowledge, such as that obtained from auditing or reviewing the historical statements.
Comfort Letters
The letter ordinarily is dated on, or shortly after, the date the underwriting agreement is signed. The agreement specifies the cut-off date. Thus, the letter states that the described procedures did not cover the period from the cut-off date to the date of the letter. The letter should be addressed only to the requesting party (or that party and the entity) and should not be given to anyone else. The auditor should refer to, but not repeat, the report on the audited statements included in the securities offering. A typical comfort letter includes a statement about the auditor's independence. A typical comfort letter expresses, if applicable, an opinion on whether audited statements included in the securities offering comply as to form, in all material respects, with the applicable accounting requirements of the 1933 act and the related rules and regulations adopted by the SEC. The requesting party may request the auditor to repeat in the comfort letter the report on the audited statements. Because of the significance of the date of the auditor's report, the auditor must not agree to the request. Report capsule info, pro forma , forecast, coments on statistical and finance info
AU-C 915
The type of report that may be issued on a specific entity's statements.
Comments on these statements should be in the form of negative assurance.
Unaudited interim financial information.
n element is defined for the purposes of AU-C 805,
as an element, account, or item of a financial statement.
The auditor's report on cash-basis financial statements need not be [4].
restricted to its use
