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Question 1

before reissuing prior year audit report on former client, what should auditor do? (three things)

Answer 1

1. read current year FS
2. compare prior period info that the auditor reported on with FS
3. obtain letters of rep from the management of the former client and from successor auditor

Question 2

if report is not revised, no significant changes have occurred, and the FS are not restated on a prior-period report, what date should the auditor use in a reissued report?

Answer 2

the date of the prior period report
note: using a subsequent date implies the auditor has done more work, so if they haven’t there is no need to use a later date

Question 3

when a predecessor auditor report is NOT presented, what four things will the successor auditor need to indicate?

Answer 3

1. statements audited by the predesccesor (don’t name them unless cap companies have merged)
2. opinion expressed by the predecessor
3. nature of any EOM, OM, or explanatory paragraph
4. date of predecessor report

Question 4

EOM paragraph – placement on audit report

Answer 4

after opinion paragraph

Question 5

if group engagement partner assumes responsibility for component auditor work, need they mention the component auditor in the report?

Answer 5

NO

Question 6

dual dating

Answer 6

used when the auditor wishes to extend responsibility for one subsequent event happening after the original date of the auditor report

Question 7

where should an explanation on how a different basis of accounting differs from GAAP be explained

Answer 7

notes to the financial statement

auditor will refer to this note in an emphasis of matter paragraph

Question 8

if FS are not properly titled for OCBOA, what should auditor do

Answer 8

qualify opinion and disclose any reservations in a basis for modification paragraph

Question 9

what is an auditor’s responsibility for supplementary information required by FASB but outside the basic FS

Answer 9

apply limited procedures & include an other matter paragraph

Question 10

how to report on accompanying information that is subject to the same auditing procedures as in the basic FS

Answer 10

accompanying information is fairly stated in

ALL MATERIAL RESPECTS in relation to the FS as a whole

Question 11

one word, or one goal of looking at supplementary information

Answer 11

CONSISTENCY
want to make sure it is consistent with the audited FS. auditor is not obligated to issue a separate opinion on the supplementary information, instead want to ensure it is consistent with what is included in the FS