[AUD] Other audit report issues

Audit of group FS

group engagement team should obtain understanding of component auditor's

discuess, review, perform additonal auditing procedures if necessary

competence, independent

> assume rep, not refer audit

 

Report FS using framework generally accepted in another country

auditor should understand, written rep regarding purpose and used of FS

1) used outside the US

  modified US report or standard report of the other country

 

2) to be used in US

US standard report + EM(departure from gaap

 

Reports on the application of accounting principles

request from a prospective lient for a written / oral report on the accounting treatment

no hypothetical transaction

Required

obtain understanding of form and substance of the transction

consult with the companu's current auditors

Report

resp for accounting treatment rests with preprers

difference in fact might change report

use restriction

 

Letters for underwriters(comfort letter)

period not covered by an accounts report, addressed to the underwriter

not required by the act and not considered to be part of the registration

ⓐ positive assurance: independence + audited FS complied w SEC requirement 

ⓑ Negative assurance on unaudited info (interm, pro forma, subsequent changes..)

ⓒ use restriction