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The additional information in identification “containing audited financial statements”
The additional information in identification “containing audited financial statements”
The additional information in identification “containing audited financial statements”
The additional information in identification “containing audited financial statements”
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The additional information in identification “containing audited financial statements”


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  • 1. The Additional Information in Identification “Containing audited Financial Statements” Summary: Eliminates the distinction between other information that is included in an auditor submitted document that contains the clients basic financial statements and the auditors report thereon and other information that is in a client prepared document that the auditor read the other information of which the auditor is aware in order to identify material inconsistencies, if any, with the audited financial statements. The auditor becomes aware of an apparent material misstatement of fact, that the auditor discusses the matter with management. If, after discussion, the auditor still considers that there is an apparent material misstatement of fact, the statement establishes a presumptively mandatory requirement that the auditor request management to consult with a qualified third party, Introduction: This article describes the auditor’s responsibilities when other information is included in documents that contain the audited financial statements and the auditor’s report. Such Documents might be annual reports to holders of securities or beneficial interests, annual Reports of charitable or philanthropic entities, and annual filings required by the Securities Exchange, Events to Apply: The auditor should read the other information in the document to determine whether it is consistent with the financial statements but is under no obligation to corroborate it. If the auditor determines that there are material inconsistencies between the audited financial statements and the other information, the auditor should determine whether the financial statements or the audit report needs to be revised. If neither requires revision, the auditor should ask that the client revise the additional information. If the client fails to revise the additional information, the auditor should consider An Examination of an Entity's Internal Control over Financial Reporting That is integrated with an Audit of Its Financial Statements, should be followed, Elucidation: 01. The purpose of this International Standard on Auditing (ISA) is to establish standards and provide guidance on the auditor’s consideration of other information, on which the auditor has no obligation to report, in documents containing audited financial statements. Such as those used in securities offerings 02. If the auditor has not been engaged to examine and report on management's Assertion, the auditor should follow "the auditor has no obligation to perform any procedures to corroborate other information contained in a document." 03. An auditor is required to consider internal control in an audit of the financial statements; he or she would often be familiar with matters covered in a management report on internal control over financial reporting. As a result, the auditor may become aware of information that causes him or her to believe that management's assertion on
  • 2. the effectiveness of internal control over financial reporting contains a material misstatement of fact as described, 04. Examples of other information include a report by management or those charged with governance on operations, financial summaries or highlights, employment data, planned capital expenditures, financial ratios, names of officers and directors and selected quarterly data. 05. Some jurisdictions require the auditor to apply specific procedures to certain of the other information, Other References by Management to Internal Control over Financial Reporting, I. Access to Other Information II. Consideration of Other Information III. Material Inconsistencies IV. Material Misstatements of Fact V. Availability of Other Information I. Access to other Information: An auditor can consider other information included in the annual report, timely access to such information will be required. The auditor therefore needs to make appropriate arrangements with the entity to obtain such information prior to the date of the auditor’s report. In certain circumstances, all the other information may not be available prior to such date II. Consideration of Other Information: The objective and scope of an audit of financial statements are formulated on the premise that the auditor’s responsibility is restricted to information identified in the auditor’s report. Accordingly, the auditor has no specific responsibility to determine that other information is properly stated. III. Material Inconsistencies: The auditor identifies a material irregularity; the auditor should determine whether the audited financial statements or the other information needs to be amended. If an amendment is necessary in the audited financial statements and the entity refuses to make the amendment, the auditor should express a qualified or adverse opinion. IV. Material Misstatements of Fact: When the auditor still considers that there is an apparent misstatement of fact, the auditor should request management to consult with a qualified third party, such as the entity’s legal counsel and should consider the advice received.
  • 3. V. Availability of Other Information: When all the other information is not available to the auditor prior to the date of the auditor’s report, the auditor would read the other information at the earliest possible opportunity thereafter to identify material inconsistencies. If, on reading the other information, the auditor identifies a material inconsistency or becomes aware of an apparent material misstatement of fact, the auditor would determine whether the audited financial statements or the other information need revision. Conclusion: Commonly, management may discuss its responsibility for internal control over financial reporting and report on its effectiveness. In reading such information, the auditor should evaluate specific references by management that deal with the auditor's consideration of internal control in planning and performing the audit of the financial statements, particularly if such reference Would lead the reader to assume the auditor had performed more work than required under generally accepted auditing standards or would lead the reader to believe that the auditor was giving assurances on internal control. The auditor should also consider whether management's comment or statement uses the auditor's name in such a way as to indicate or imply that the auditor's involvement is greater than is supported by the facts. Auditors may be asked by their clients to render professional services with respect to information in electronic sites. Such services, which might take different forms, are not contemplated by segment. Other auditing or attestation standards may apply, About The Author: Mohammad Wahid Abdullah Khan (MBA, CPFA, CPIA, CFC) Dhaka, Bangladesh Home Page: MOHAMMAD WAHID ABDULLAH KHAN Dhaka, Bangladesh, is a PhD Candidate in "Criminal Psychology" as well he is “freelance Author, online columnists, Human psychoanalyst, industrial psychotherapist, Certified Financial Consultant, & Certified Forensic Accountant, too dynamic entrepreneur, utilize creativity leadership and teamwork to design and execute solutions that creates customer value. Moreover Mr. Khan is CEO & Certified Consultant of” Wahid & co, Wak Business Solutions, Wak Business Support, “Wam Associates” & leader of the” Wahid Consulting Group”; Prior to consultancy Mr. Wahid has fulfilled more than 14 (fourteen) years
  • 4. working in various fields of Business like - Accounts, Finance, Auditing (Internal & External Audit), Project budgeting and Project costing related positions in some of the largest group & join venture companies in Bangladesh. Which experience encouraged him to work as a “professional consultant” from a few years, Mr. Khan is realistic and implements his assignment within the bounds, objectives and capabilities of the organization. His extraordinary quick understanding of strategic options helps find direction and supports management in decision making. He has a “doer” attitude and gets things done on the technical and functional side. As a “Consultant” Mr. Wahid believe that his study & physiological motivation is very strong, as well my confident level is high & my quantitative skills are well-built also he is crystal clear about my every single goal which helped me to be a very tough contestant “Consultant” in the business consultant arena Professional Membership: • Associate Member – Institute of Management Consultants Bangladesh (IMCB) •Member- Association of Proposal Management Professionals® (APMP®) • Member – The Next level Purchasing Association. •Member- The Chartered Institute of Personnel and Development (CIPD) • Member - The Professional Risk manager’s international Association (PRMIA) • Affiliate Member- Global Association of Risk Professional (GARP) • Member - The International Association of Risk and Compliance Professionals (IARCP) • Lifetime Member - Dragon fire martial arts association “International” (DFMAA) • Individual Member: License Logic LLC • Associate Membership - The American Psychological Association (APA) • Member - The Global Community of Information Professionals