Audit Report Flashcards
What type of opinion
- present fairly, in all material respect
- except for
- do not present fairly, in all material respect
- we do not express an opinion
- unqualified
- qualified
- adverse
- disclaimer of opinion
What type of opinion
- misstatement - departune from PFRS
- scope limitation - cannot obtain evidence
- multiple uncertainties
- lacks independence
Misstatement
- Material and Pervasive = Adverse
- Material but not Pervasive = Qualified
Scope Limitation
- Material and Pervasive = Disclaimer of Opinion
- Material but not Pervasive = Qualified
Multiple Uncertainties & Lacks Independence
- Disclaimer of Opinion
INDEPENDENT AUDITOR’S REPORT (TAOB K MAON SAD)
- Title
- Addressee
- Opinion
- Basis of Opinion
- Key Audit Matters
- Management Responsibility
- Auditor Responsibility
- Other Reporting Responsibility
- Name of Engagement Partner
- Signature of Engagement Partner
- Address
- Date of Auditor’s Report
TITLE
- report of an “independent” auditor
Yes
ADDRESSEE
- to whom shall it be addressed?
An audit report can be addressed to name of a specific person. True or False?
- shareholders / TCWG
- False
Which part of auditor report contains…?
- in accordance with PSA
- in accordance with Code of Ethics
- auditor is independent
- auditor has gathered sufficient appropriate evidence
Basis of Opinion
Which part of auditor report contains…?
- responsible for FS, Internal Control, Going Concern
Management Responsibility
Which part of auditor report contains…?
- to obtain reasonable assurance…
- general description of audit
Auditor Responsibility
The “Auditor Responsibility” part of an audit report will be amended if the auditor will issue an adverse opinion. True or False?
False
- will be amended ONLY if Disclaimer of Opinion
KEY AUDIT MATTERS
- from matters communicated with TCWG → select the most significant
- state why it is significant and how auditor respond
Key Audit Matters are required to be in every audit report. True or False?
False
- required for LISTED companies
- XPN : Disclaimer of Opinion
ADDRESS
- jurisdiction where auditor practices
Yes
DATE OF AUDITOR’S REPORT
- completion of fieldwork
NOTE : should not be dated earlier than date of authorization
Yes
Emphasis of Matter or Other Matter
- presented and disclosed in FS
Emphasis of Matter
- Other Matter → not presented and disclosed
Emphasis of Matter
- must not be required to modify opinion
Both EOM and OM → must not be a KAM
EMPHASIS OF MATTER (GUES²T)
- Going Concern
- Uncertainty of Litigation
- Early Adoption of PFRS
- Special Purpose FS
- Subsequent Discovery of Fact → previously issued opinion is affected
- Tragedy
OTHER MATTER (CROP)
- Comparative Information
- Restriction on Distribution / Use of Report
- Other Information → Material Inconsistency
- Prior FS audited by Another Auditor
Corresponding Figures
- selected items
- Opinion → 2020 only
Comparative FS
- required in PH
- Opinion → 2019 and 2020
Yes
