Engagement to report on Summary of Financial statement.
Standard on Auditing -810 | Engagement to report on summary of financial statement.
Engagement
Activates: -
1.Auditor must be same as appointed
for Financial statement.
2.Before accepting, Auditor shall
· Determine applied criteria are acceptable.
· Agreement from management for its responsibility.
a)
Prepare summary financial statement as
per applied criteria.
b)
Available audited financial
statement to the intended user of summary financial statement without any difficulty.
c) Include auditors report on summary financial statements in any document.
d) Form an opinion-Agree with management.
Summary of Financial Statements :-
1.
Auditor shall apply audit procedure and to report on the summary of financial statement .
Audit Procedure: - 1.Evaluate whether the summary
financial statements adequately disclose their summarized nature and identify
the audited financial statements.
I.
From whom or where the audited
financial statements are available; or
II.
The law or regulation that specifies
that the audited financial statements need not be made available to the intended
users of the summary financial statements and establishes the criteria for the
preparation of the summary financial statements.
3.Evaluate whether the summary financial statements adequately disclose the applied criteria.
4.Compare the summary financial statements with the related information in the audited financial statements to determine whether the summary financial statements agree with or can be re-calculated from the related information in the audited financial statement.
5. Evaluate whether the summary financial statements are prepared in accordance with the applied criteria.
6. Evaluate, in view of the purpose of the summary financial statements, whether the summary financial statements contain the information necessary, and are at an appropriate level of aggregation, so as not to be misleading in the circumstances.
7. Evaluate whether the audited financial statements are available to the intended users of the summary financial statements without undue difficulty, unless law or regulation provides that they need not be made available and establishes the criteria for the preparation of the summary financial statements.
Form of Opinion: -
Unmodified opinion-When
the auditor has concluded that an unmodified opinion on the summary financial
statements is appropriate, the auditor’s opinion shall, unless otherwise
required by law or regulation, use one of the following phrases:
(a) The accompanying summary financial statements are
consistent, in all material respects, with the audited financial statements, in
accordance with the applied criteria
(b) The accompanying summary financial statements are a fair
summary of the audited financial statements, in accordance with the applied
criteria.
Modified opinion-
When the auditor has concluded that a modified opinion on the summary financial
statements is appropriate, the auditor’s opinion shall, unless otherwise
required by law or regulation, use one of the following phrases:
(a) The accompanying summary financial statements are not consistent,
in all material respects, with the audited financial statements, in accordance
with the applied criteria
(b) The accompanying summary financial statements are a not fair summary of the audited financial statements, in accordance with the applied criteria.
If management does not agree to make the necessary changes, the auditor shall express an adverse opinion on the summary financial statements
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