Kế toán, kiểm toán - Chapter 19: Additional assurance services: historical financial information

Additional Assurance Services: Historical Financial InformationChapter 19Types of Attestation EngagementsExaminationsReviewsAgreed-upon procedures2 Special ReportsReports on financial statements prepared in accordance with a comprehensive basis of accounting other than GAAP.Reports on specified elements, accounts, or items of financial statements.Reports on compliance with aspects of contractual agreements or regulatory requirements related to audited financial statements.Reports on financial presentations to comply with contractual or regulatory provisions.Reports on audited financial information presented in prescribed forms or schedules that require a prescribed form of auditors’ report.3 Introductory Paragraph We have audited the accompanying statement of assets and liabilities arising from cash transactions of XYZ Company as of December 31, 20X1, and the related statement of revenue collected and expenses paid for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. Audit Report--Cash Basis4 Scope Paragraph We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Audit Report--Cash Basis5 Basis of Accounting and Opinion Paragraphs As described in Note 1, these financial statements were prepared on the basis of cash receipts and disbursements, which is a comprehensive basis of accounting other than generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets and liabilities arising from cash transactions of XYZ Company as of December 31, 20X1, and the revenue collected and expenses paid during the year then ended, on the basis of accounting described in Note 1. Audit Report--Cash Basis6Report on Special-Purpose Presentation Standard Introductory and Scope Paragraphs The accompanying statement was prepared to present the net assets of Warren Company sold to Easton Corporation pursuant to the purchase agreement described in Note 7, and is not intended to be a complete presentation of Warren Company's assets and liabilities. In our opinion, the accompanying statement of net assets sold presents fairly, in all material respects, the net assets of Warren Company as of June 8, 20X1 sold pursuant to the purchase agreement referred to in Note 7, in conformity with generally accepted accounting principles. This report is intended solely for the information and use of the boards of directors and management of Warren Company and Easton Corporation and should not be used for any other purpose. 7Review Report for Nonpublic Companies--First Paragraph We have reviewed the accompanying balance sheet of XYZ Company as of December 31, 20XX, and the related statements of income, retained earnings, and cash flows for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of XYZ Company. 8Review Report for Nonpublic Companies--Second Paragraph A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. 9 Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. Review Report for Nonpublic Companies--Third Paragraph10Compilation Report--First ParagraphWe have compiled the accompanying balance sheet of XYZ Company as of December 31, 19XX, and the related statements of income, retained earnings, and cash flows for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. 11Compilation Report--Second ParagraphA compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. 12Comparison of Audits, Reviews and CompilationsCompilationAgreed-Upon ProceduresReviewExaminationType of ServiceAccountingAttestAttestAttestExplicit assuranceNoneState findings or negative assuranceLimited (negative) assuranceOpinionDistribution of reportGeneralLimited to specified parties involvedGeneral, unless based on agreed-upon criteriaGeneral, unless based on agreed-upon criteriaMinimum proceduresRead statementsAgreed-upon proceduresLimited procedures, such as inquiry and analytical proceduresCollection of sufficient evidence to support opinionCommentsReferred to as “unaudited statements” for public companiesReferred to as “audits” for financial statements13