A1 Audit Reports Flashcards
SSARs provide guidance for (audited? or unaudited?) financial statements or (audited? or unaudited?) financial information of nonissuers.
both unaudited (private company)
SSAE uses AT-C for section reference lookups under what standard?
AICPA
What are management’s responsibilities?
- Financial Statements
- Internal Control
What are the auditor’s responsibilities
- maintain professional skepticism
- comply with ethical requirements
- exercising professional judgement
What are some examples of inherent limitations
- AR –> bad debt
- Inventory –> obsolete
- PP&E –> life and salvage
- Intangibles –>cash flow
In audit world, what are some legal limits on the auditor’s ability to obtain audit evidence.
- impairment
- warranties
- contingencies
- lawsuits
For public companies, what are the objectives of the audit of internal control over financial reporting
- Express an opinion on the effectiveness of the company’s internal control over financial reporting
- obtain reasonable assurance about the existence of material weaknesses
If the problem relating to financial statements is material but not pervasive, what opinion should the auditor issue?
Qualified opinion
If the problem relating to financial statements is material AND pervasive, what opinion should the auditor issue?
Adverse opinion
If the auditor cannot obtain sufficient appropriate audit evidence but the error is material and not pervasive, what opinion should the auditor issue?
Qualified opinion
If the audit cannot obtain sufficient appropriate audit evidence and the error is material and pervasive, then the auditor will issue a _______ opinion.
disclaimer of opinion
If management of a nonissuer revises the financial statements due to subsequent events, the auditor has an obligation to perform procedures and ______ the date of the audit report.
change the date. This is because of the subsequent event that happened prior to the release date of the audit report.
