A manager is evaluating the audit plan prepared by a staff member for reporting on summary financial statements of a client. Select from the option list provided whether the staff member is correct, the manager is correct, or neither is correct. Each choice may be used once, more than once, or not at all. Answer Staff member's procedure Manager's evaluation mi 12 mi 1. Be certain our firm has reviewed We should be certain we or audited the financial have compiled, reviewed, or statements from which the audited the related financial summary statements are derived. statements. 2. Determine that summary The summary statements stand alone and need not statements identify the audited refer to the audited financial financial statements. statements. The summary statements 3. Compare the summary financial should be compared to the statement balances with the related information in the entity's general ledger audited financial statements. 4. Determine that the summary financial statements have been The summary financial statements should be prepared in accordance with accounting standards generally consistent with the audited accepted for summary statements in accordance statements. with the applied criteria. 5. Determine whether the level of This is management's aggregation is appropriate. responsibility and need not be considered 6. Form an opinion on whether the A disclaimer should be summary statements are issued on the summary presented fairly financial statements. LI! II E c Select an option below The staff member is correct. O The manager is correct. Neither is correct