A1 Audit Reports Flashcards
KAM’s vs. CAM’s
Key
Audit
Matters
Follows the basis of opinion paragraph of a non-issuer
Critical
Audit
Matters
Follows the basis of opinion paragraph of a Issuer. For each CAM make sure that you Identify it on a PAD
Identify
Principle considerations to determine CAM
Addressed with mgmt, how?
Disclosures made?
Procedures to follow to review Subsequent Events: “PRIME”
Post Balance Transactions
Review Management Rep Letter
Inquire with management and those charged with governance
Minutes of the board review
Examine latest interim financial statements
What does the Auditor include in updated Opinion? “DORCS”
DORCS change their minds:
- *D**ate
- *O**pinion type previously issued
- *R**eason for prior opinion
- *C**hanges that have occurred
- *S**tatement that the “opinion…is different”
Other Comprehensive Basis of Accounting
OCBOA
- Cash Basis
- Tax Basis
- Regulatory Basis
What does PRIME stand for in subsequent events?
Post Balance Transactions
Review Management Rep Letter
Inquire with management and those charged with governance
Minutes of the board review
Examine latest interim financial statements
