A1 - Audit Reports Flashcards
1
Q
How to identify subsequent events?
A
Post bs transactions - cutoff and YE balance review
Representation Letter
Inquiry - client’s legal counsel
Minitues
Examine - Compare interim FS with FS under audit
2
Q
When is a EOM paragraph mandatory?
A
ANGELSSS
Another auditor
Necessary departure from GAAP
Going concern - “specific” wording substantial doubts to cont as “going concern”
Error of correction in principle (cash to accrual or change in entities)
Lack of consistency
Special circumstances (auditor discretion)
Subsequent events
Special framework
