Interpretation and Application of International Standards on Auditing

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ISA 810 (REVISED AND REDRAFTED) ENGAGEMENTS TO REPORT ON SUMMARY FINANCIAL STATEMENTS

The objective of ISA 810 is to outline the auditor’s responsibility on determining:

a. Whether it is acceptable to accept appointment to report on summary financial statements [ISA810.3(a)].

b. Where the auditor accepts appointment to report on summary financial statements:

i. to form an opinion on the summary financial statements based on the evaluation of conclusions drawn from the evidence obtained [ISA810.3(b)]; and

ii. to express clearly that opinion through a written report that also describes the basis for that opinion [ISA810.3(c)].

ISA810, at paragraph 4 contains the following definitions relevant to this ISA:

Applied Criteria

The criteria applied by management in the preparation of the summary financial statements.

[ISA810.4(a)]

Audited Financial Statements

Financial statements audited by the auditor in accordance with ISAs, and from which the summary financial statements are derived.

[ISA810.4(b)]

Summary Financial Statements

Historical financial information that is derived from financial statements but that contains less detail than the financial statements, while still providing a structured representation consistent with that provided by the financial statements of the entity’s economic resources or obligations at a point in time or the changes therein for a period of time. Different jurisdictions may use different terminology to describe such historical financial information. ...