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AUD - NINJA Notes 2015 > Audit Reports > Flashcards

Audit Reports Flashcards

1
Q

What should be included for the Auditor’s address?

A

The City and State where located

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2
Q

What is Management Responsible for in regards to the Financial Statements?

A

Preparation and Fair Presentation of Financial Statements in accordance with the Applicable Financial Reporting Framework

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3
Q

What is Management Responsible for in regards to Internal Control?

A

Internal Control Design, Implementation, Maintenance

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4
Q

What are the headings in the Audit Report for an Unmodified Opinion?

A

(TIM-AA) Title; Introduction; Management Responsibility; Auditor Responsibility; Audit Opinion

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5
Q

What are the headings in the Audit Report for an Modified Opinion?

A

(TIMA-BA) Title; Introduction; Management Responsibility; Auditor Responsibility; Basis for (Modified) Opinion; Audit Opinion

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6
Q

In an Unmodified Opinion with Emphasis-of-Matter / Other-Matter sections, what is the order of the headings?

A

(TIM-AA EMO) Title; Introduction; Management Responsibility; Auditor Responsibility; Audit Opinion; Emphasis-of-Matter; Other-Matter

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7
Q

What are the requirements for referencing a Component Auditor in the Audit Report?

A

Component Financial Statements must be prepared using same Financial Reporting Framework as the Group Financial Statements; Component Auditor must have performed audit in accordance with GAAS or PCAOB Standards.

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8
Q

What must the Group Engagement Partner do if they assume responsibility for the Component Auditor’s work?

A

Perform additional audit procedures; Be involved in Component Auditors work; Perform Risk Assessment procedures; Assess Risk of Material Misstatement

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9
Q

What standards govern SSARS engagements?

A

Compilations are governed by SSARS (Statements on Standards for Accounting and Review Services)

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10
Q

Which clients can have compilation engagements?

A

Non-SEC (non-public) registrants only.

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11
Q

What is a Compilation?

A

Accountant puts together financial statements with information PROVIDED BY MANAGEMENT. No opinion is expressed and no assurances are given. Independence is not required.

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12
Q

What disclosures are required for Compilation engagements?

A

Disclosures not necessary must state that they are not included

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13
Q

What standards govern Review engagements?

A

SSARS (Statements on Standards for Accounting and Review Services)

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14
Q

What type of assurance is given in a Review engagement?

A

Reviews give limited assurance.

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15
Q

What procedures are required for Review engagements?

A

Analytical procedures are required for reviews. Compare results to documented predictions.

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16
Q

What is a Review engagement?

A

Financial statements are presented with no opinion expressed- and limited assurances are given. Independence is required for a review engagement.

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17
Q

What is a Forecast?

A

A prospective financial statement that uses normal circumstances. General and limited use allowed.

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18
Q

What is a Projection?

A

A prospective financial statement using hypothetical situations. Only limited use by the client is allowed.

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19
Q

What are the requirements for Agreed Upon Procedures?

A

Independence is required; Only limited use by the client is allowed.

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20
Q

What disclosures are required for remote likelihood of losses?

A

No disclosure required.

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21
Q

What disclosure is required for a probable loss contingency?

A

Accrue if estimable. Emphasis-of-Matter paragraph if not estimable.

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22
Q

What disclosure is made if a loss contingency is reasonably possible?

A

Auditor assesses need for Emphasis-of-Matter paragraph based on loss likelihood.

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23
Q

How is a gain contingency reported?

A

Gain contingencies are not reported.

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24
Q

How does an immaterial GAAP issue affect the audit opinion?

A

It doesn’t. Opinion is Unmodified.

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25
How does a very material GAAP issue affect the Audit Report?
Modified-Adverse Opinion is issued. Emphasis-of-Matter paragraph is added after Opinion paragraph.
26
How do GAS standards compare to GAAS?
GAS is more strict than GAAS.
27
What is required under the Single Audit Act?
An audit performed under governmental auditing standards (GAS). A report on internal control is required. GAAS and GAS don't require the I/C report.
28
What should be included for the Auditor's address?
The City and State where located
29
What is Management Responsible for in regards to the Financial Statements?
Preparation and Fair Presentation of Financial Statements in accordance with the Applicable Financial Reporting Framework
30
What is Management Responsible for in regards to Internal Control?
Internal Control Design, Implementation, Maintenance
31
What are the headings in the Audit Report for an Unmodified Opinion?
(TIM-AA) Title; Introduction; Management Responsibility; Auditor Responsibility; Audit Opinion
32
What are the headings in the Audit Report for an Modified Opinion?
(TIMA-BA) Title; Introduction; Management Responsibility; Auditor Responsibility; Basis for (Modified) Opinion; Audit Opinion
33
In an Unmodified Opinion with Emphasis-of-Matter / Other-Matter sections, what is the order of the headings?
(TIM-AA EMO) Title; Introduction; Management Responsibility; Auditor Responsibility; Audit Opinion; Emphasis-of-Matter; Other-Matter
34
What are the requirements for referencing a Component Auditor in the Audit Report?
Component Financial Statements must be prepared using same Financial Reporting Framework as the Group Financial Statements; Component Auditor must have performed audit in accordance with GAAS or PCAOB Standards.
35
What must the Group Engagement Partner do if they assume responsibility for the Component Auditor's work?
Perform additional audit procedures; Be involved in Component Auditors work; Perform Risk Assessment procedures; Assess Risk of Material Misstatement
36
What standards govern SSARS engagements?
Compilations are governed by SSARS (Statements on Standards for Accounting and Review Services)
37
Which clients can have compilation engagements?
Non-SEC (non-public) registrants only.
38
What is a Compilation?
Accountant puts together financial statements with information PROVIDED BY MANAGEMENT. No opinion is expressed and no assurances are given. Independence is not required.
39
What disclosures are required for Compilation engagements?
Disclosures not necessary must state that they are not included
40
What standards govern Review engagements?
SSARS (Statements on Standards for Accounting and Review Services)
41
What type of assurance is given in a Review engagement?
Reviews give limited assurance.
42
What procedures are required for Review engagements?
Analytical procedures are required for reviews. Compare results to documented predictions.
43
What is a Review engagement?
Financial statements are presented with no opinion expressed- and limited assurances are given. Independence is required for a review engagement.
44
What is a Forecast?
A prospective financial statement that uses normal circumstances. General and limited use allowed.
45
What is a Projection?
A prospective financial statement using hypothetical situations. Only limited use by the client is allowed.
46
What are the requirements for Agreed Upon Procedures?
Independence is required; Only limited use by the client is allowed.
47
What disclosures are required for remote likelihood of losses?
No disclosure required.
48
What disclosure is required for a probable loss contingency?
Accrue if estimable. Emphasis-of-Matter paragraph if not estimable.
49
What disclosure is made if a loss contingency is reasonably possible?
Auditor assesses need for Emphasis-of-Matter paragraph based on loss likelihood.
50
How is a gain contingency reported?
Gain contingencies are not reported.
51
How does an immaterial GAAP issue affect the audit opinion?
It doesn't. Opinion is Unmodified.
52
How does a very material GAAP issue affect the Audit Report?
Modified-Adverse Opinion is issued. Emphasis-of-Matter paragraph is added after Opinion paragraph.
53
How do GAS standards compare to GAAS?
GAS is more strict than GAAS.
54
What is required under the Single Audit Act?
An audit performed under governmental auditing standards (GAS). A report on internal control is required. GAAS and GAS don't require the I/C report.
55
# Audit Reports What should be included for the Auditor's address?
The City and State where located
56
# Audit Reports What is Management Responsible for in regards to the Financial Statements?
Preparation and Fair Presentation of Financial Statements in accordance with the Applicable Financial Reporting Framework
57
# Audit Reports What is Management Responsible for in regards to Internal Control?
Internal Control Design, Implementation, Maintenance
58
# Audit Reports What are the headings in the Audit Report for an Unmodified Opinion?
(TIM-AA) Title; Introduction; Management Responsibility; Auditor Responsibility; Audit Opinion
59
# Audit Reports What are the headings in the Audit Report for an Modified Opinion?
(TIMA-BA) Title; Introduction; Management Responsibility; Auditor Responsibility; Basis for (Modified) Opinion; Audit Opinion
60
# Audit Reports In an Unmodified Opinion with Emphasis-of-Matter / Other-Matter sections, what is the order of the headings?
(TIM-AA EMO) Title; Introduction; Management Responsibility; Auditor Responsibility; Audit Opinion; Emphasis-of-Matter; Other-Matter
61
# Audit Reports What are the requirements for referencing a Component Auditor in the Audit Report?
Component Financial Statements must be prepared using same Financial Reporting Framework as the Group Financial Statements; Component Auditor must have performed audit in accordance with GAAS or PCAOB Standards.
62
# Audit Reports What must the Group Engagement Partner do if they assume responsibility for the Component Auditor's work?
Perform additional audit procedures; Be involved in Component Auditors work; Perform Risk Assessment procedures; Assess Risk of Material Misstatement
63
# Audit Reports What standards govern SSARS engagements?
Compilations are governed by SSARS (Statements on Standards for Accounting and Review Services)
64
# Audit Reports Which clients can have compilation engagements?
Non-SEC (non-public) registrants only.
65
# Audit Reports What is a Compilation?
Accountant puts together financial statements with information PROVIDED BY MANAGEMENT. No opinion is expressed and no assurances are given. Independence is not required.
66
# Audit Reports What disclosures are required for Compilation engagements?
Disclosures not necessary must state that they are not included
67
# Audit Reports What standards govern Review engagements?
SSARS (Statements on Standards for Accounting and Review Services)
68
# Audit Reports What type of assurance is given in a Review engagement?
Reviews give limited assurance.
69
# Audit Reports What procedures are required for Review engagements?
Analytical procedures are required for reviews. Compare results to documented predictions.
70
# Audit Reports What is a Review engagement?
Financial statements are presented with no opinion expressed- and limited assurances are given. Independence is required for a review engagement.
71
# Audit Reports What is a Forecast?
A prospective financial statement that uses normal circumstances. General and limited use allowed.
72
# Audit Reports What is a Projection?
A prospective financial statement using hypothetical situations. Only limited use by the client is allowed.
73
# Audit Reports What are the requirements for Agreed Upon Procedures?
Independence is required; Only limited use by the client is allowed.
74
# Audit Reports What disclosures are required for remote likelihood of losses?
No disclosure required.
75
# Audit Reports What disclosure is required for a probable loss contingency?
Accrue if estimable. Emphasis-of-Matter paragraph if not estimable.
76
# Audit Reports What disclosure is made if a loss contingency is reasonably possible?
Auditor assesses need for Emphasis-of-Matter paragraph based on loss likelihood.
77
# Audit Reports How is a gain contingency reported?
Gain contingencies are not reported.
78
# Audit Reports How does an immaterial GAAP issue affect the audit opinion?
It doesn't. Opinion is Unmodified.
79
# Audit Reports How does a very material GAAP issue affect the Audit Report?
Modified-Adverse Opinion is issued. Emphasis-of-Matter paragraph is added after Opinion paragraph.
80
# Audit Reports How do GAS standards compare to GAAS?
GAS is more strict than GAAS.
81
# Audit Reports What is required under the Single Audit Act?
An audit performed under governmental auditing standards (GAS). A report on internal control is required. GAAS and GAS don't require the I/C report.
82
What should be included for the Auditor's address?
The City and State where located
83
What is Management Responsible for in regards to the Financial Statements?
Preparation and Fair Presentation of Financial Statements in accordance with the Applicable Financial Reporting Framework
84
What is Management Responsible for in regards to Internal Control?
Internal Control Design, Implementation, Maintenance
85
What are the headings in the Audit Report for an Unmodified Opinion?
(TIM-AA) Title; Introduction; Management Responsibility; Auditor Responsibility; Audit Opinion
86
What are the headings in the Audit Report for an Modified Opinion?
(TIMA-BA) Title; Introduction; Management Responsibility; Auditor Responsibility; Basis for (Modified) Opinion; Audit Opinion
87
In an Unmodified Opinion with Emphasis-of-Matter / Other-Matter sections, what is the order of the headings?
(TIM-AA EMO) Title; Introduction; Management Responsibility; Auditor Responsibility; Audit Opinion; Emphasis-of-Matter; Other-Matter
88
What are the requirements for referencing a Component Auditor in the Audit Report?
Component Financial Statements must be prepared using same Financial Reporting Framework as the Group Financial Statements; Component Auditor must have performed audit in accordance with GAAS or PCAOB Standards.
89
What must the Group Engagement Partner do if they assume responsibility for the Component Auditor's work?
Perform additional audit procedures; Be involved in Component Auditors work; Perform Risk Assessment procedures; Assess Risk of Material Misstatement
90
What standards govern SSARS engagements?
Compilations are governed by SSARS (Statements on Standards for Accounting and Review Services)
91
Which clients can have compilation engagements?
Non-SEC (non-public) registrants only.
92
What is a Compilation?
Accountant puts together financial statements with information PROVIDED BY MANAGEMENT. No opinion is expressed and no assurances are given. Independence is not required.
93
What disclosures are required for Compilation engagements?
Disclosures not necessary must state that they are not included
94
What standards govern Review engagements?
SSARS (Statements on Standards for Accounting and Review Services)
95
What type of assurance is given in a Review engagement?
Reviews give limited assurance.
96
What procedures are required for Review engagements?
Analytical procedures are required for reviews. Compare results to documented predictions.
97
What is a Review engagement?
Financial statements are presented with no opinion expressed- and limited assurances are given. Independence is required for a review engagement.
98
What is a Forecast?
A prospective financial statement that uses normal circumstances. General and limited use allowed.
99
What is a Projection?
A prospective financial statement using hypothetical situations. Only limited use by the client is allowed.
100
What are the requirements for Agreed Upon Procedures?
Independence is required; Only limited use by the client is allowed.
101
What disclosures are required for remote likelihood of losses?
No disclosure required.
102
What disclosure is required for a probable loss contingency?
Accrue if estimable. Emphasis-of-Matter paragraph if not estimable.
103
What disclosure is made if a loss contingency is reasonably possible?
Auditor assesses need for Emphasis-of-Matter paragraph based on loss likelihood.
104
How is a gain contingency reported?
Gain contingencies are not reported.
105
How does an immaterial GAAP issue affect the audit opinion?
It doesn't. Opinion is Unmodified.
106
How does a very material GAAP issue affect the Audit Report?
Modified-Adverse Opinion is issued. Emphasis-of-Matter paragraph is added after Opinion paragraph.
107
How do GAS standards compare to GAAS?
GAS is more strict than GAAS.
108
What is required under the Single Audit Act?
An audit performed under governmental auditing standards (GAS). A report on internal control is required. GAAS and GAS don't require the I/C report.

AUD - NINJA Notes 2015 (8 decks)

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