AUD Prep: FYI
MD&A -

Must have audited the annual financials for the latest period applicable to the MD&A presentation; any other financials involved must have been audited (or at least reviewed if interim/quarterly financials) by the practitioner or a predecessor auditor.

Primary Dimensions of an Examination of MD&A
1. Planning the examination (similar to an audit engagement)—Develop an overall strategy that limits "attestation risk" to an acceptably low level (IxCxD)

2. Consideration of internal control applicable to MD&A (similar to an audit)

3. Obtain sufficient evidence—Varies with the circumstances

4. Consideration of subsequent events (SEC expects MD&A to reflect events at or near the filing date)

Question

FYI
MD&A -

Must have audited the annual financials for the latest period applicable to the MD&A presentation; any other financials involved must have been audited (or at least reviewed if interim/quarterly financials) by the practitioner or a predecessor auditor.

Primary Dimensions of an Examination of MD&A
1. Planning the examination (similar to an audit engagement)—Develop an overall strategy that limits "attestation risk" to an acceptably low level (IxCxD)

2. Consideration of internal control applicable to MD&A (similar to an audit)

3. Obtain sufficient evidence—Varies with the circumstances

4. Consideration of subsequent events (SEC expects MD&A to reflect events at or near the filing date)

Monique Tyler · Accepted Answer

Four Assertions Implicitly Embodied in the MD&A Presentation - OCCP

1. Occurrence—Whether reported events actually occurred during the period.

2. Consistency with the financials—Whether historical amounts have been accurately derived from the financials.

3. Completeness of the explanation—Whether the description of matters comprising the MD&A presentation is complete.

4. Presentation and disclosure—Whether information in the MD&A is properly classified, described, and disclosed.

AUD Prep

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