A1-Forming an Audit Opinion Flashcards

1
Q

what is the big picture of audit opinions?

A

1a. Unqualified (clean opinion) - Issuer
1b. Unmodified (clean opinion) - Nonissuer
2a. Qualified “except for GAAP” (material) - GAAP problem
2b. Qualified “except for GAAS” (material) - Audit problem
3a. Adverse (GAAP problem and pervasive)
3b. Disclaimer (GAAS problem and pervasive)
4. Withdraw (false, fraudulent, deceptive, or misleading)

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2
Q

what does GAAS do?

A

GAAS provides guidance on how to perform the audit

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3
Q

which FS an auditor needs to audit to express an opinion on an entity’s stockholders’ equity?

A

BS only

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4
Q

which FS an auditor needs to audit to express an opinion on an entity’s element based on net income?

A

IS and BS

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