A5 Flashcards
Scope limitation triggers what kind of audit opinion?
Disclaimer or withdrawal
Material weakness triggers what kind of audit opinion?
Adverse Opinion
NEGATIVE assurance can be expressed when….
Accountant is requested to report on the results of performing a review of management’s assertions.
Attestation Services EXCLUDE=
Advocacy services & Consulting Services
Practitioner (auditor) report on AUP that is in the form of procedures & findings should contain…
A statement that Subject Matter is the responsibility of the responsible party.
Prospective Financial forecast
Can be used for General Use and some ocacions limited
pensar que el weather forecast everybody has access to it so can be used for General use
Prospective Financial projections
Can’t be used for General Use ONLY LIMITED
They will require a paragraph restricting the use and distribution of the report.
Standard report on COMPILATION of PROJECTION should NOT include
Statement that the accountant expresses only limited assurance that the results may be achieved
Compilation=NO ASSURANCE
examination of entity’s compliance w/specified requirements practitioner should…
Asses control risk
Change from audit to AUP… auditor should report…
Not include a reference to the original audit engagement but may include reference to the procedures that have been performed
Accepting an engagement to compile an entity’s financial projections would be inappropriate if they include
Offering statement of the entity’s initial public offering of common stock
IPO
If practitioner concludes that the assumptions did not provide a reasonable basis for the prospective FS what type of opinion should be granted?
ADVERSE
Condition/policy that must exist in AUP is that practitioner is
Independent from the client & other specified parties
Government Audit Standards defines 3 types of engagements
Financial Audits, Attest engagements, and performance audits
Prior to the issuance of the practitioner’s report,…..
The engaging party acknowledges that the procedures performed were appropriate to meet the intended purpose of the engagement.
In a COMPLIANCE engagement auditor DOES NOT
Express and OPINION on the effectiveness of IC over compliance.
Documentation of conclusions opinion would not be appropriate
In performing Audit in accordance with GAGAS (YELLOW BOOK) the auditor
Accepts greater reporting responsibilities that under GAAS
What procedures should an accountant perform during engagement to compile prospective GS
Make inquiries about accounting principles used in the preparation of the prospective FS
When performing attestation engagements related to prospective FS accountant should ensure that
All significant assumptions used to prepare FS ae disclosed
AUP report always to contain
Reference to AICPA
AUP practitioner should
Assess control Risk
Materiality considerations in AUP & GAAS
are different
