Other Reporting Considerations
Other reporting considerations appear on roughly 8-12% of AUD exam questions, with special purpose frameworks being the most frequently tested subtopic. The #1 AICPA trap is getting candidates to restrict cash-basis or tax-basis reports — remember, only regulatory and contractual basis reports are restricted. A detail most candidates miss: under AU-C 800, the auditor's report on special purpose framework statements must include an emphasis-of-matter paragraph that describes the framework AND states the statements may differ from GAAP. Also know AU-C 805 (single financial statement audits) and AU-C 810 (summary financial statements), which test whether the auditor can report on only part of the financial statements.
CPA Exam Lab is an independent study resource and is not affiliated with, endorsed by, or sponsored by the AICPA® or NASBA. Practice questions are original content created for study purposes. “CPA” is a registered trademark of the AICPA.
What AICPA Wants You to Know
- 1Apply reporting requirements for comparative financial statements
- 2Understand the auditor's responsibility for other information in documents containing audited statements
- 3Handle subsequent discovery of facts existing at the report date
- 4Report on financial statements prepared using special purpose frameworks
- 5Understand reporting on supplementary information