Immersing in audit

  Summary financial statements is historical financial information that is derived from financial statements but that contains less detail than the financial statements, while still providing a structured representation consistent with that provided by the financial statements of the entity’s economic resources or obligations at a point in time or the changes therein for a period of time. Different jurisdictions may use different terminology to describe such historical financial information. Example of summary financial statements (Summary statement of financial position) is presented below. Considerations related to the audit of summary financial statements engagement. The auditor shall accept an engagement to report on summary financial statements only when the auditor has been engaged to conduct an audit of the financial statements from which the summary financial statements are derived. Before to accept an engagement to report on summary financial statements, the auditor shal...

 

  Element of a financial statement or element means an element, account, or item of a financial statement. Examples of Specific Elements, Accounts or Items of a Financial Statement are listed below:   ● Accounts receivable, allowance for doubtful accounts receivable, inventory, the liability for accrued benefits of a private pension plan, the recorded value of identified intangible assets, or the liability for “incurred but not reported” claims in an insurance portfolio, including related notes. ● A schedule of externally managed assets and income of a private pension plan, including related notes.  ● A schedule of net tangible assets, including related notes. ● A schedule of disbursements in relation to a lease property, including explanatory notes. ● A schedule of profit participation or employee bonuses, including explanatory notes A single financial statement or a specific element of a financial statement includes the related disclosures. The related discl...

  General purpose financial statements General purpose financial statements are financial statements prepared in accordance with a general-purpose framework. General purpose framework is a financial reporting framework designed to meet the common financial information needs of a wide range of users. An example of a general-purpose financial statement is a set of financial statements prepared in accordance with applicable Generally Accepted Accounting Principles or International Financial Reporting Standards (IFRSs). Special purpose financial statements Under certain circumstances, an entity would be required to submit financial statements as per a special purpose framework or an audited single financial statement, specific elements, accounts, or items of a financial statement to a specific category of stakeholders Special purpose financial statements are financial statements prepared in accordance with a special purpose framework. Special purpose framework – A financial r...

What is the other information? Auditor`s responsibilities relating to other information. Other information is financial or non-financial information (other than financial statements and the auditor’s report thereon) included in an entity’s annual report. Annual report is a document, or combination of documents, prepared typically on an annual basis by management or those charged with governance in accordance with law, regulation or custom, the purpose of which is to provide owners (or similar stakeholders) with information on the entity’s operations and the entity’s financial results and financial position as set out in the financial statements. An annual report includes information about the entity’s developments, its future outlook and risks and uncertainties, a statement by the entity’s governing body, and reports covering governance matters. The auditor is required to read and consider the other information because other information that is materially inconsistent with the financia...