AUD Prep: FYI
Modifications of MD&A (examination) Report -

1. Reservations as to presentation—Results in a qualified or adverse opinion.

2. Reservations as to scope—Results in a qualified opinion or a disclaimer of opinion.

3. Division of responsibility—May refer to another practitioner's report on MD&A for a specific component as a partial basis for one's own report.

4. Emphasis of a matter—Presented as a separate paragraph (e.g., information included beyond the SEC's requirements).

Question

FYI
Modifications of MD&A (examination) Report -

1. Reservations as to presentation—Results in a qualified or adverse opinion.

2. Reservations as to scope—Results in a qualified opinion or a disclaimer of opinion.

3. Division of responsibility—May refer to another practitioner's report on MD&A for a specific component as a partial basis for one's own report.

4. Emphasis of a matter—Presented as a separate paragraph (e.g., information included beyond the SEC's requirements).

Monique Tyler · Accepted Answer

Review of MD&A—Results in Negative Assurance
Purpose—To report whether the practitioner has any reason to believe that:

1. The presentation does not include the elements required by the SEC;

2. The historical financial amounts are not accurately derived from the financials; and

3. The underlying information, assumptions, etc., do not provide a reasonable basis for the disclosures within the MD&A.