A1_M10: Other Information and Supplementary Information

The auditor should perform limited procedures on required supplementary information accompanying the F/S. In addition, the auditor’s report on the F/S should include a separate section with the heading, “Supplementary Information.”

When audited F/S are presented in a client’s document containing other information, the auditor should read the “other information” to determine that it is consistent with the audited F/S. *the auditor has no obligation to perform any procedure to corroborate “other information” contained in a document such as an annual report.

The auditor should read other information accompanying the basic F/S and consider whether it contains a material inconsistency or MM of fact. *applies to annual reports and management reports

When information accompanies audited F/S in a client-prepared document, the auditor is required to read the information. If such information is materially inconsistent with the F/S and the F/S do not require revision, the auditor should request that the information (in this case the letter of transmittal) be revised.

When the audit engagement includes reporting on selected financial data, the report prepared by the auditor should be limited to the data that was obtained from the F/S.

If providing an opinion on supplementary information, the auditor should perform audit procedures using the same materiality level used in the F/S audit.

In order to issue an opinion on supplementary information, the auditor must determine that along with other conditions, neither an adverse opinion nor a disclaimer of opinion was issued on the F/S.

The auditor’s report on supplemental information should include a statement that the supplemental information has been subjected to audit procedures performed in conjunction with the audit of the F/S.

The information may be included in a separate report instead of as a separate section in the auditor’s report on the F/S.

If the auditor is unable to obtain sufficient appropriate audit evidence to support an opinion on the supplemental information, the auditor should disclaim an opinion on the supplemental information. In those situations, the auditor’s report on the supplemental information should describe the reason for the disclaimer and state that the auditor is unable to and does not express an opinion on the supplemental information.

For additional supplementary information required by the FASB, the auditor of a nonissuer should apply certain limited procedures to the information and add a separate section with the heading “Required Supplementary Information” to the F/S audit report.

The auditor would not perform a review or express negative assurance on supplementary information required by GAAP.

If the quarterly data required by SEC REgulation S-K have been omitted, the auditor’s report must include a statement indicating that the company has no presented such data.

GAAP does not require the basic F/S to include mgmt’s discussion and analysis. Therefore, the auditor’s opinion on the fairness of presentation of the F/S in accordance with GAAP is not affected by the omission. However, the auditor does want to alert the reader that the required supplementary information is omitted, which is stated in an explanatory paragraph.