Audit book 1 Flashcards
What provides the most authoritative guidance for an auditor of a nonissuer
The most authoritative guidance is general guidance from the statements of Auditing Standards. Auditors should be prepard to explain deviations from standards
In order for an auditor to express an opinion they must obtain reasonable assurance the financials are free from material misstatement
1 Plan the work and supervise any assistants
2 Determine and apply appropriate materiality levels
3 identity and assess risks of material misstatement, from either error or fraud
4 Obtain sufficient appropriate audit evidence
Responsibilities of management
1 Preparation of fin stmts in accordance with the correct fin reporting framework
2 design and implementing the internal controls
3 Provide access to information and persons with in the entity to complete the audit
Qualified opinion
Material unjustified departure from GAAP
Adverse opinion
Material & pervasive departure from GAAP
Disclaimer opinion
Pervasive scope limitation
In an adverse opinion the following is stated in the opinion section
In the auditors opinion because of the significance of the matters discussed in the bases for a adverse opinion section the accompanying consolidated fin stsm do not present fairly
disclaimer opinion will state what in the opinion section
because of the significance of the matters described in the basis for disclaimer of opinion section of our report we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these fin stms
Qualified opinion will state what in the opinion section
In our opinion except for the omission of information described in the basis for qualified opinion section of our report
The assembly of the audit report for non issuers occurs in how many days
Non issuer has 60 days to submit the audit report
The assembly of the audit report for issuers occurs in how many days
Non issuer has 45 days to submit the audit report
When a critical audit matter is identified what should the auditor do?
Include description of how the critical audit matter was addressed in the audit
Include description of the principle considerations that led to the CAM
Include references to relevant financial statement accounts relating to the CAM
Qualified opinion scope limitation will include what wording in the opinion section
possible effects on the fin stmts
Before reissuing the prior years auditors report on the fin stmts of a former client the auditor should do what?
1 Read the fin stmts of the current period
2 Compare the prior period to the current period fin stms
3 Obtain a letter of representation from the successor auditor & mgmt
When a predecessors auditors report is not presented the successor auditor should indicate the following items
1 That the stmts were audited by a predecessor auditor. The predecessor auditor should not be named unless the practice of the predecessor was acquired by or merged with he successor
2 The type of opinion expressed by the predecessor auditor and if an opinion was modified, and the reason for the modification
3 The nature of any emphasis of matter, other matter, or explanatory paragraph is included in the auditors report
4 the date of the predecessor auditors report
