AUD 1 SIMS

Question 1

Reports and paragraphs - effect on FS is immaterial

opinion type?
Intro?
Auditors responsibility?
Opinion paragraph?
Basis for Paragraph Opinion?

Answer 1

type? unmodified
Intro?  no change
Auditors responsibility?  no change
Opinion?  no change
Basis for opinion?  "none required"

Question 2

Reports and paragraphs?

FS effect is moderate? Scope limiation?

Answer 2

qualifed, with a modified auditors responsibility, and opinion paragraph, and insert Basis for Opinion “preceding” Opinion paragraph

*if pervasive, then “disclaimer”, same as above except modify the “intro” paragraph

Question 3

Dual auditors, unmodified opinion

which paragraphs will be modified?

Answer 3

auditors responsibility, and opinion paragraph, but does NOT require a Basis for Opinion paragraph

Question 4

Report modifications, if auditor agrees with accounting principal change, and the change is properly disclosed, then “unmodified”.

Any report modifications?

Answer 4

Yes, add an EOM paragraph “after” the opinion paragraph

Question 5

What type of information is “quarterly results”, and what are the required procedures?

Answer 5

RSI, and apply limited procedures