Audit 1 Module 3 - Forming An Audit Opinion

Question 1

In order to form an opinion on whether financial statements are presented fairly in all material respects, take into account:

Answer 1

1. Sufficient appropriate audit evidence was obtained
2. FS are prepared in accordance w the requirements of the applicable financial reporting framework

Question 2

Auditor refers to ____on how to PERFORM the audit

Answer 2

GAAS generally accepted auditing standards

Question 3

Auditor refers to ________ to evaluate whether transactions are recorded and reported fairly in the FS

Answer 3

Financial reporting framework (ex GAAP)

Question 4

Unmodified | unqualified opinion

Answer 4

Nonissuers | issuers

Question 5

The terms: emphasis-of-matter and other-matter

Answer 5

Nonissuers

Question 6

The term: explanatory

Answer 6

Issuers

Question 7

Auditors report should be modified when:

Answer 7

1. FS as a whole are materially misstated
2. Auditor is unable to obtain sufficient appropriate audit evidence

Question 8

Types of modified opinions: (3)

Answer 8

Qualified - all good except…
Adverse - do not present fairly
Disclaimer - no opinion at all

Question 9

An auditor of a Nonissuers concludes that a clients illegal act (material) has not been properly accounted for or disclosed. Depending on the pervasiveness, auditor will express

Answer 9

Qualified or adverse opinion