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    Auditors Report On Summary Financial Statements Element of Auditors Report

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    Pau Che
    The document outlines requirements for auditors reporting on summary financial statements derived from audited financial statements. It discusses that the auditor must have conducted an audit of the underlying financial statements. Management is responsible for ensuring the summary statements are consistent with the audited statements. The auditor must determine if the criteria for preparing the summary statements are acceptable. The auditor's report on the summary statements should include a title indicating it was prepared by an independent auditor, an appropriate addressee, and address whether comparatives are included.

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    Auditors Report On Summary Financial Statements Element of Auditors Report

    Uploaded by

    Pau Che
    37 views2 pages
    The document outlines requirements for auditors reporting on summary financial statements derived from audited financial statements. It discusses that the auditor must have conducted an audit of the underlying financial statements. Management is responsible for ensuring the summary statements are consistent with the audited statements. The auditor must determine if the criteria for preparing the summary statements are acceptable. The auditor's report on the summary statements should include a title indicating it was prepared by an independent auditor, an appropriate addressee, and address whether comparatives are included.

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    half chap

    Original Title

    Audit Chap 29

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    The document outlines requirements for auditors reporting on summary financial statements derived from audited financial statements. It discusses that the auditor must have conducted an audit of the underlying financial statements. Management is responsible for ensuring the summary statements are consistent with the audited statements. The auditor must determine if the criteria for preparing the summary statements are acceptable. The auditor's report on the summary statements should include a title indicating it was prepared by an independent auditor, an appropriate addressee, and address whether comparatives are included.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    37 views2 pages

    Auditors Report On Summary Financial Statements Element of Auditors Report

    Uploaded by

    Pau Che
    The document outlines requirements for auditors reporting on summary financial statements derived from audited financial statements. It discusses that the auditor must have conducted an audit of the underlying financial statements. Management is responsible for ensuring the summary statements are consistent with the audited statements. The auditor must determine if the criteria for preparing the summary statements are acceptable. The auditor's report on the summary statements should include a title indicating it was prepared by an independent auditor, an appropriate addressee, and address whether comparatives are included.

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    of 2

    C.

    Summarized Financial Statement


    PSA 810 (clarified) Engagements to Report on Summary Financial Statements
    Requirements:
    Engagement acceptance
    The auditor shall accept an engagement to report on summary financial
    statements in accordance with this PSA only when the auditor has been engaged to
    conduct an audit in accordance with PSAs of the financial statements from which the
    summary financial statements are derived.
    Criteria
    Management is responsible for the determination of the information that needs to
    e reflected in the summary financial statements so that they are consistent; in all
    material respects, with or represent a fair summary of the audited financial
    statements.
    Factors affect the auditors determination of the acceptability of the applied
    criteria:
    The nature of the entity
    The purpose of the summary financial statements
    The information needs of the intended users of the summary financial statement;
    and
    Whether the applied criteria will result in summary financial statements that are
    not misleading in the circumstances.
    The criteria for the preparation of summary financial statements may be
    established by an authorized or recognized standards setting organization or by law
    or regulation. Where established criteria for the preparation of summary financial
    statements do not exist, criteria maybe developed by management, for example,
    based on practice in a particular industry.
    Timing of works and events subsequent to the date of the auditors report on the
    audited Financial Statements
    The procedures described in paragraph 8 of PSA 810 are often performed during
    or immediately after the audit of financial statements. When the auditors report on
    the summary financial statement after the completion of the audit of financial
    statements, the auditor is not required to obtain additional audit evidence on the
    audited financial statements, or report on the effects of events that occurred
    subsequent to the date of the auditors report on the audited financial statements since
    the summary financial statements are derived form the audited financial statements
    and do not update them.
    Auditors report on summary financial statements
    Element of auditors report

    Title
    This indicate the report of an independent auditor, for example, Report of
    Independent Auditor affirms that the auditor has met all the relevant ethical
    requirements regarding independence. This distinguishes the report of the independent
    auditor from reports issued by others.
    Addressee
    Factors that may affect the auditors evaluation of appropriateness of the addressee of
    the summary financial statements include the terms of the engagement, the nature of the
    entity, and the purpose of the summary financial statements.
    COMPARATIVES
    If the audited financial statements contain comparatives, there is a presumption that
    the summary financial statements also would contain comparatives. Comparatives in the
    audited financial statements may be regarded as corresponding figures or as comparative
    financial information. PSA 710 (Redrafted) describes how this difference affects the
    auditors report on the financial statements, including, in particular, reference to other
    auditors who audited the financial statements for the prior period.
    Circumstances that may affect the auditors determination whether an omission of
    comparatives is reasonable include the nature and objective of the summary financial
    statements, the applied criteria, and the information needs of the intended users of the
    summary financial statements.
    NEXT PAGE 1065 . . . . . . .

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