Identifying the entities to be included in the reporting entity is a critical part of public sector financial reporting.
(a) Explain some inherent challenges faced in defining the reporting entity.
(b) Explain why it is important to users of public sector financial statements that the reporting entity be described properly.
(c) Under the CICA PSA Handbook, identify the principle used when assessing whether an organization is part of the reporting entity.
(d) Explain the practical issues encountered by those applying the principle.
(e) Explain how the primary and secondary criteria are applied.
(f) From the secondary criteria shown in Illustration 10.7, select one of the persuasive indicators and one of the other indicators. Explain how each indicator might support application of the principle used to assess control.

  • CreatedJune 09, 2015
  • Files Included
Post your question