Audits of Single F/S and Specific Elements, Accounts, or Items Flashcards
Before accepting the audit engagement to perform an engagement audit on a single element or F/S, what should the auditor consider?
Is it even practicable to perform an audit of a single F/S or element or will the audit require additional information to before the audit
T/F: if the auditor is asked to audit the equity section of the balance sheet, the auditors should audit the entire f/S?
True!
T/F: if the auditor is asked to provide a opinion on the net income or equivalent such as EPS, the auditor should audit just the income statement?
False- you would be required to audit both the income statement and balance sheet.
If an auditor only audits a single F/S, can the other documents be included in the same report?
Yes, but the audited F/S needs to be distinguished from the other F/S in the report.
If the auditor issues a adverse opinion the complete set of financial statements, they should not issue an unmodified opinion on a single financial statement?
TRUE- that is speaking out both sides of your mouth
If there is an emphasis of matter paragraph that applies to the complete set of F/S, what should the auditor consider with respect to the single financial statement being audited?
Determine whether the emphasis of matter or other matter paragraph relates to the financial statement being audited. if it does related, it should be included in the auditors report.