Reports on Compliance with Contractual Agreements or Regulatory Requirements

Reports on Compliance with Contractual Agreements or Regulatory Requirements

.21 Where an auditor`s report on compliance with contractual provisions or prudential requirements is included in the report expressing the auditor`s opinion on the financial statements, the statutory auditor should include a paragraph in the audit opinion on the financial statements that provides negative assurance of compliance with the applicable obligations of the agreement to the extent that they relate to accounting matters. and clarifies that negative assurance is given as part of the audit of the financial statements. As a general rule, the statutory auditor should also find that the audit was not primarily intended to acquire knowledge of compliance. In addition, the report should include a paragraph containing a description and source of all significant interpretations made by management in accordance with paragraph .20d and a paragraph limiting the use of the report to the specified parts discussed in paragraph .20e. Below are examples of reports that may be published: We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). These standards require us to plan and conduct the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement. An audit includes a review of the audit evidence of the amounts and information provided in the financial statements on a test basis. An audit also includes an assessment of management`s accounting principles and material estimates, as well as an assessment of the overall presentation of the annual financial statements. We believe that our audits provide an appropriate basis for our opinion.

(iii) The obligation for an audited entity to use depreciation rates that are within the ranges set by RUS for each major operating account (see RUS Bulletin 183-1, Depreciation Rates and Procedures for www.rd.usda.gov/files/UPA_Bulletin_183-1.pdf) or with the requirements of the state regulator responsible for the depreciation rates of the audited entity when calculating monthly provisions. .28 The financial statements prepared on the basis of the accounting described above are not considered to have been prepared in accordance with an “aggregate accounting basis” within the meaning of paragraph .04 of this Article, as the criteria used to prepare these financial statements do not meet the requirement to be “criteria with material support”, although the criteria are final. 23 A contractual agreement as described in this section is an agreement between the customer and one or more third parties who are not the auditor. 4 Public documents for the purposes of the auditors` opinion on the financial statements of a supervised entity prepared in accordance with the accounting rules of a public supervisory authority shall include the circumstances in which the public must make specific requests for access to the report or copies of the report. On the other hand, the auditor would be prohibited from using this form of report if the entity distributes the financial statements voluntarily or at the express request of parties other than the regulator. .20 Where an auditor`s report on compliance with contractual provisions or prudential requirements is presented in a separate report, the report should include: 25 Sometimes the auditor`s client is not the person responsible for the financial statements to which the statutory auditor reports. For example, if the buyer asks the auditor to report on the seller`s conclusion prepared in accordance with a purchase-sale contract, the person responsible for closing may be the seller`s management. In this case, the wording of this statement should be amended to clearly identify the party responsible for the reported financial statements.

.06 Unless the financial statements meet the presentation requirements in accordance with an “overall accounting basis that is not generally accepted” within the meaning of paragraph .04, the auditor must amend his or her report due to deviations from generally accepted accounting principles (see AS 3105). 1 This section does not require a title for an auditor`s report if the auditor is not independent. See RO 3320, Association with Financial Statements, for guidance on reporting when the auditor is not independent. .07 Terms such as the balance sheet, balance sheet, profit and loss account, operating account and cash flow statement or similar securities unchanged generally apply only to financial statements intended to present the financial position, results of operations or cash flows in accordance with generally accepted accounting principles. Therefore, the statutory auditor should verify that the financial statements on which he reports are appropriately titled. For example, cash-based financial statements could be titled “Statement of Assets and Liabilities Arising from Cash Transactions” or “Statement of Revenues Received and Expenses Paid”, and financial statements prepared on a legislative or regulatory basis could be entitled “Income Statement – Legal Basis”. If the statutory auditor considers that the financial statements are not properly titled, he must express his reservations in an explanatory paragraph of the report and accompany the opinion. .25 Where the statutory auditor is required to report on financial statements prepared on the basis of accounting required by a contractual arrangement or legislation which results in incomplete presentation but which is otherwise in accordance with generally accepted accounting principles or another complete accounting basis, the auditor`s report should include: (h) investments. For audited auditors in the electricity and telecommunications sectors, it is necessary to say whether the auditor has become aware during the audit which indicates that the audited entity has submitted a detailed investment plan that is not presented accurately. This timetable shall be included as supplementary information or in the notes to the annual accounts.

The auditor determined that no investments in subsidiaries or associated companies were disclosed during the audit. .02 The PCAOB standards apply when an auditor conducts and reports on an audit of the annual financial statements. For example, the financial statements may be those of a corporation, a consolidated group of corporations, a combined group of affiliates, a not-for-profit organization, a government entity, an estate or trust, a partnership, an owner, a segment of them or an individual. “Financial statements” means a presentation of financial data, including notes to the financial statements, derived from accounting documents and intended to communicate the economic resources or obligations of an entity at a given time or the changes contained therein during a given period in accordance with a complete accounting basis. For reporting purposes, the independent auditor should consider each of the following types of financial presentations as a financial statement: (ii) the recipients of all other subsidy programs under the electricity and telecommunications programs, the requirements to prepare and make available to RUS all necessary financial reports accurately and in a timely manner, as needed for that specific programme. The statutory auditor shall indicate whether, in the course of the audit, he was aware of anything indicating that the information provided by the beneficiary to RUS in his last submission is not compatible with the audited records of the beneficiary. If the recipient states that an amended report has been submitted, the comments must relate to the amended report. We were informed that, according to XYZ COMPANY`s interpretation of the agreement referred to in the first paragraph, the royalties were based on the number of engines produced after the entry into force of a reduction for discarded production losses, but without reduction for discarded returns to the field, although the field returns were replaced by new engines at no cost to customers. 19If the statutory auditor is responsible for providing assurance of compliance with contractual agreements or regulatory provisions relating to matters which have not been subject to the audit procedures used in the statutory audit, he or she should refer to the guidelines in Article 601 of the TA, Attestation of conformity. .