What You Really Need to Know 21: LO1 Define the various financial presentations and levels of service involved in association with special reports and compliance reporting prospectuses, management discussion and analysis, and financial statements for use in other countries. Auditors may perform a variety of services acting in the capacity of an auditor. services include: (1) reporting on specified elements, accounts, or items of a financial statement, (2) reporting on compliance with contractual agreements or regulatory requirements, and (3) limited-scope engagements to perform procedures agreed on by the client. Reports on compliance with contractual agreements or regulatory requirements may be required if clients have restrictive covenants in loan agreements and auditors may provide negative or positive assurance. Reports on agreed-upon procedures may be requested to examine a particular element, account, or item in a financial statement. special-purpose engagements have a limited scope so GAAS reporting standards do not apply. LO2 Explain the various financial presentations and levels of service involved in association with future-oriented financial information, prospectuses, management discussion and analysis, and financial statements for use in other countries. Accountants are associated with prospective financial information when a client requests them to help assemble or submit a report on a forecast or projection. The nature of prospective financial statements can be a financial forecast or a financial projection. Accountants can report on forecasts and projections in three ways: Examination of prospective financial statements (equivalent to an audit), Compilation of prospective financial statements (facilitating the mechanical preparation of the forecast or projection with no assurance given), or Application of agreed-upon procedures. With increasing interest in corporate governance, the profession is becoming more involved in corporate disclosure. CPA Canada’s initiative on guidance concerning management’s is geared to directors and management and stresses that discussion and analysis (MD&A) MD&A is management’s perspective and explanation for past performance results and future prospects. The MD&A included in the annual report should complement and supplement the financial statements. In engagements requiring use of foreign standards, Canadian auditors are expected to follow the Canadian general and field work auditing standards; however auditors must know the accounting principles applied in the country the statements are intended for. The Internal Accounting Standards is the place to start. The audit report can take different forms, depending on the circumstances and the distribution of the foreign GAAP financial statements.
What You Really Need to Know 21: LO1 Define the various financial presentations and levels of service involved in association with special reports and compliance reporting prospectuses, management discussion and analysis, and financial statements for use in other countries. Auditors may perform a variety of services acting in the capacity of an auditor. services include: (1) reporting on specified elements, accounts, or items of a financial statement, (2) reporting on compliance with contractual agreements or regulatory requirements, and (3) limited-scope engagements to perform procedures agreed on by the client. Reports on compliance with contractual agreements or regulatory requirements may be required if clients have restrictive covenants in loan agreements and auditors may provide negative or positive assurance. Reports on agreed-upon procedures may be requested to examine a particular element, account, or item in a financial statement. special-purpose engagements have a limited scope so GAAS reporting standards do not apply. LO2 Explain the various financial presentations and levels of service involved in association with future-oriented financial information, prospectuses, management discussion and analysis, and financial statements for use in other countries. Accountants are associated with prospective financial information when a client requests them to help assemble or submit a report on a forecast or projection. The nature of prospective financial statements can be a financial forecast or a financial projection. Accountants can report on forecasts and projections in three ways: Examination of prospective financial statements (equivalent to an audit), Compilation of prospective financial statements (facilitating the mechanical preparation of the forecast or projection with no assurance given), or Application of agreed-upon procedures. With increasing interest in corporate governance, the profession is becoming more involved in corporate disclosure. CPA Canada’s initiative on guidance concerning management’s discussion and analysis (MD&A) is geared to directors and management and stresses that MD&A is management’s perspective and explanation for past performance results and future prospects. The MD&A included in the annual report should complement and supplement the financial statements. In engagements requiring use of foreign standards, Canadian auditors are expected to follow the Canadian general and field work auditing standards; however auditors must know the accounting principles applied in the country the statements are intended for. The Internal Accounting Standards is the place to start. The audit report can take different forms, depending on the circumstances and the distribution of the foreign GAAP financial statements.