SI is provided voluntarily by the client, so the auditor only need to read the info to determine if it is consistent with the F/S and obtain written representations from management. If not consistent, then add explanatory paragraph identifying the inconsistency, but opinion not affected.
Auditor engaged to report on whether SI is fairly stated, in all material aspects, in relation to the F/S as a whole:
SI and the F/S should be derived from the same records, relate to same period, F/S were audited and a report issued that was neither adverse nor disclaimer of opinion, either SI will accompany the F/s or will be readily available. Procedures to express an opinion on SI include: inquire management purpose/how prepared/assumption of SI; evaluate content; obtain written reps from management (responsibility, belief fairly presented, consistency, signif assumptions, availability).
Required SI: apply limited review procedures to see if required info has been provided and whether it is correct. EX: info as it relates to GASB includes management's discussion and analysis, budgetary schedules, funding progress and employer contributions for other post employment benefits. Review procedures: inquire about methods of preparing, compare for consistency, obtain written rep from mgnt accepting resp for other info.
No opinion is required because the procedures to not constitute an audit as long as info appears to have been provided and is free from obvious errors. No mention of it will be in auditor's report on basic F/S and it is marked “unaudited.”
Hope this clears some of it up. GL.
Licensed CPA January 2018
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