Auditing Report

(prior period not audited)

So, the auditor should perform appropriate procedures to provide reasonable

assurance that the prior period financial statements do not contain material
misstatements that could affect the FS of the current period.

If there is a material misstatement, the incoming auditor should request to revise

the prior years figure to the management.

(Reporting on corresponding figures)

The comparatives are not specifically identified because the auditors opinion is
on the current periods financial statements as a whole (including the corresponding
figures)

(Other information accompanying audited fs)

An entity may publish many documents like annual reports that contain other
information in addition to audited financial statements and auditors report. When this
occurs the following guidelines must be observed.

Material Inconsistencies

- Exist when the other information contradicts the information contained in

audited fs.

Effect of other information on auditors report

- If the auditor identifies that there is a material inconsistency, the auditor should
determine whether the audited fs or other information needs to be amended
Material Misstatement of Fact

- After identifying material inconsistencies, the auditor may become aware of

material misstatement of fact

Audit of Group Financial Statement

- The auditor should consider whether his participation is sufficient to be able to

act as the group auditor who will express an opinion on group financial
statements. This consideration involves ______

Understanding the component auditor

- After concluding that is appropriate to serve as the group auditor

- If the group auditor has not become satisfied about professional competence and
independence of the component auditor, the group auditor should obtain
sufficient appropriate audit evidence relating to financial information

Reporting Responsibility

- Therefore, the auditors report on the group financial statement shall not refer to
a component auditor

Report of Special Purpose financial statements

- Therefore it is appropriate to indicate that the auditors report is intended solely

for the specific users.

When accepting this type of engagement

1. To be able to express opinion on specific component of a financial statements

2. Wala
3. to avoid giving the user the impression that the report relates to the entire
financial statements