AUD Study Group – Q1 2018 - Page 10

Hello All! Here is the definition of Capsule information straight from the AICPA: Capsule financial information. Unaudited summarized interim financial information for periods subsequent to the periods covered by the audited financial statements or unaudited interim financial information included in the securities offering. Capsule financial information may be presented in narrative or tabular form and is often provided for the most recent interim period and for the corresponding period of the prior year.

Hope this helps.

https://www.aicpa.org/content/dam/aicpa/research/standards/auditattest/downloadabledocuments/au-c-00920.pdf

Capsule financial information. Unaudited summarized interim
financial information for periods subsequent to the periods covered
by the audited financial statements or unaudited interim financial
information included in the securities offering. Capsule
financial information may be presented in narrative or tabular
form and is often provided for the most recent interim period and
for the corresponding period of the prior year.
The framework recommends that accountants wait until audit fieldwork is substantially complete and the year-end financial statements are in substantially final form before considering the provision of a SAS 100 negative assurance on the fourth quarter financial statements or capsule information. If the accountant is prepared to give this level of comfort, the framework advises that the fourth quarter financial statements must be prepared at an S-X article 10 level of detail, with all required financial statements and disclosures, and must be attached to the comfort letter if they are not included in the registration statement.
An accountant may provide negative assurance that he or she has read the issuer's financial information for the last three months of a calendar-year company and is unaware of certain specified changes in financial statement amounts. However, the framework urges extreme caution in providing this level of comfort prior to the completion of the audit. The accountant should consider providing negative assurance as to specified changes in financial statement amounts based on reading subsequent financial statements through the end of a fiscal year only after the audit fieldwork is substantially complete, but could provide negative assurance for a shorter period within the fourth quarter where the audit fieldwork is not substantially complete. The framework suggested that the accountant may wish to note that the audit of the full year financial statements is not completed and that the fourth quarter information is still subject to change.

Can you elaborate on your question. Are you asking about DOL and what type of reports they need?

It also gives me trouble so I did some drawings for myself that what doc goes where and who is responsible for the duties. When roger explained it became so messy and confusing on the white board. Refer to the book separately for the individual cycle and then connect them. Draw your own flowchart so you will remember it.

Thanks……

ALL THE BEST FOR YOUR RESULT.

Are there any circumstances where a lack of Mgmt Rep Letter would NOT result in a Disclaimer of opinion?

Good luck tomorrow, @Teal!

and thanks!!

All the best for tomorrow.