Guide to Using International Standards on Auditing in - IFAC
Guide to Using International Standards on Auditing in - IFAC
Guide to Using International Standards on Auditing in - IFAC
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<str<strong>on</strong>g>Guide</str<strong>on</strong>g> <str<strong>on</strong>g>to</str<strong>on</strong>g> <str<strong>on</strong>g>Us<strong>in</strong>g</str<strong>on</strong>g> <str<strong>on</strong>g>Internati<strong>on</strong>al</str<strong>on</strong>g> <str<strong>on</strong>g>Standards</str<strong>on</strong>g> <strong>on</strong> <strong>Audit<strong>in</strong>g</strong> <strong>in</strong> the Audits of Small- and Medium-Sized Entities Volume 1—Core C<strong>on</strong>cepts<br />
17.6 Supplementary Informati<strong>on</strong> Presented with the F<strong>in</strong>ancial Statements<br />
Supplementary <strong>in</strong>formati<strong>on</strong> is <strong>in</strong>formati<strong>on</strong> presented with the audited f<strong>in</strong>ancial statements, but not required<br />
by the applicable f<strong>in</strong>ancial report<strong>in</strong>g framework. Supplementary <strong>in</strong>formati<strong>on</strong> may be required by law,<br />
regulati<strong>on</strong>, or standards, or may be presented voluntarily.<br />
Supplementary <strong>in</strong>formati<strong>on</strong> (not required by the applicable f<strong>in</strong>ancial report<strong>in</strong>g framework) needs <str<strong>on</strong>g>to</str<strong>on</strong>g> be<br />
clearly differentiated from the audited f<strong>in</strong>ancial statements unless it is an <strong>in</strong>tegral part of the audited f<strong>in</strong>ancial<br />
statements. If such supplementary <strong>in</strong>formati<strong>on</strong> is not clearly differentiated, the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r shall ask management<br />
<str<strong>on</strong>g>to</str<strong>on</strong>g> change how the unaudited supplementary <strong>in</strong>formati<strong>on</strong> is presented. If management refuses <str<strong>on</strong>g>to</str<strong>on</strong>g> do so, the<br />
audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r shall expla<strong>in</strong> <strong>in</strong> the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s report that such supplementary <strong>in</strong>formati<strong>on</strong> has not been audited.<br />
Exhibit 17.6-1<br />
Clearly<br />
Differentiate<br />
Supplementary<br />
Informati<strong>on</strong><br />
Present<strong>in</strong>g Supplementary Informati<strong>on</strong> with the F<strong>in</strong>ancial Statements<br />
• Clearly label the <strong>in</strong>formati<strong>on</strong> as “unaudited.”<br />
• Remove any cross-references from the f<strong>in</strong>ancial statements <str<strong>on</strong>g>to</str<strong>on</strong>g> unaudited<br />
supplementary <strong>in</strong>formati<strong>on</strong>.<br />
• Place the unaudited supplementary <strong>in</strong>formati<strong>on</strong> outside of the f<strong>in</strong>ancial<br />
statements.<br />
• Identify the page numbers <strong>in</strong> the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s report <strong>on</strong> which the audited f<strong>in</strong>ancial<br />
statements are presented.<br />
The fact that supplementary <strong>in</strong>formati<strong>on</strong> is not audited does not relieve the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r of the resp<strong>on</strong>sibility<br />
<str<strong>on</strong>g>to</str<strong>on</strong>g> ensure that the <strong>in</strong>formati<strong>on</strong> is not mislead<strong>in</strong>g or <strong>in</strong>c<strong>on</strong>sistent with the other <strong>in</strong>formati<strong>on</strong> c<strong>on</strong>ta<strong>in</strong>ed <strong>in</strong><br />
audited f<strong>in</strong>ancial statements. (Refer <str<strong>on</strong>g>to</str<strong>on</strong>g> Volume 1, Chapter 15.9 that addresses ISA 720—Other Informati<strong>on</strong> <strong>in</strong><br />
Documents C<strong>on</strong>ta<strong>in</strong><strong>in</strong>g Audited F<strong>in</strong>ancial Statements.)<br />
17.7 Audits C<strong>on</strong>ducted <strong>in</strong> Accordance with ISAs and Nati<strong>on</strong>al <strong>Audit<strong>in</strong>g</strong> <str<strong>on</strong>g>Standards</str<strong>on</strong>g><br />
Where the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r is required <str<strong>on</strong>g>to</str<strong>on</strong>g> report <strong>on</strong> compliance with nati<strong>on</strong>al audit<strong>in</strong>g standards and the ISAs,<br />
reference would be made <str<strong>on</strong>g>to</str<strong>on</strong>g> both sets of standards <strong>in</strong> the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s report.<br />
A reference <str<strong>on</strong>g>to</str<strong>on</strong>g> both <str<strong>on</strong>g>Internati<strong>on</strong>al</str<strong>on</strong>g> <str<strong>on</strong>g>Standards</str<strong>on</strong>g> <strong>on</strong> <strong>Audit<strong>in</strong>g</strong> and the nati<strong>on</strong>al audit<strong>in</strong>g standards is appropriate<br />
when the follow<strong>in</strong>g c<strong>on</strong>diti<strong>on</strong>s are met.<br />
Exhibit 17.7-1<br />
Refer <str<strong>on</strong>g>to</str<strong>on</strong>g><br />
Compliance<br />
With Both ISAs<br />
and Nati<strong>on</strong>al<br />
<str<strong>on</strong>g>Standards</str<strong>on</strong>g><br />
C<strong>on</strong>diti<strong>on</strong>s<br />
• The audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s report complies with each of the ISAs relevant <str<strong>on</strong>g>to</str<strong>on</strong>g> the audit.<br />
• All further audit procedures, necessary <str<strong>on</strong>g>to</str<strong>on</strong>g> comply with nati<strong>on</strong>al standards, have<br />
been performed.<br />
• The jurisdicti<strong>on</strong> or country of orig<strong>in</strong> of the audit<strong>in</strong>g standards has been<br />
identified <strong>in</strong> the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s report.<br />
• All elements (see Exhibit 17.4-1) of the standard audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s report (even if us<strong>in</strong>g the<br />
layout and word<strong>in</strong>g specified by nati<strong>on</strong>al laws or regulati<strong>on</strong>s) have been <strong>in</strong>cluded.