In short
An alert in the report restricts its use to specified parties, typically when the subject matter is based on criteria suitable only for certain users, such as a contractual or regulatory basis of accounting, or for communications about internal control deficiencies.
Key takeaways
- It warns other readers that the report wasn't intended for them.
- Compliance reports issued in connection with an audit are also restricted.
- The auditor isn't responsible for controlling who actually gets the report.
Where it's tested
AUD: Audit Reports — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An auditor is unable to observe the physical inventory count or satisfy themselves through alternative procedures, and inventory represents 60% of total assets. What opinion is appropriate?