Audit 5 Flashcards
Examination:
Reasonable assurance, Positive
Review:
Limited Opinion, Conclusion, Only modify for GAAP Departures, Statement that Review is less scope than Audit, Inquiry and Analytical Procedures
Agreed-Upon Procedures:
No Opinion (disclaimer), List of findings, Restricted Use
Financial Forecast:
Optional General Use
Financial Projection:
Restricted Use
SSAE:
Both issuers and nonissuers, and independence
SSARS:
Only nonissuers
Compilation, Preparation:
No opinion, express limitations of usefullness
GAAS - Compliance, Non-Compliance
Opinion, Management must take responsibility and disclose any non-compliance issue, restricted use
GAGAS
GAAS and GAGAS are mentioned, NO opinion on Internal Control over compliance (unlike issuers), but discusses results of tests of IC over compliance, NO opinion on compliance, NO opinion on FS, BIGGER job than GAAS bec. of compliance and internal control
Single Audit Act
Compliance - Opinion, Internal Control on Compliance - No opinion
Cash Basis
No restriction
Regulatory or Contractual Basis
Restricted Use, Limited Opinion
By GAGAS, if potential fraud?
First investigate further, then report to management
What relationship between significant service company to user?
Part of user’s information system
Service Auditor’s job?
Less than regular audit, for example no substantive procedures
Pro Forma
Historical Data and future performance
Internal Control of Issuer?
Management and Auditor must assess and report on IC
Service Type 1 Report?
Understand Controls, disclaimer on effectiveness of controls
Service Type 2 Report?
Helps understand and may provide evidence supporting reduction in level of control risk
When do we test controls?
When control risk is moderate or low, but if high risk, go straight to substantive
