Audits of Single F/S and Specific Elements, Accounts, or Items Flashcards

1
Q

Before accepting the audit engagement to perform an engagement audit on a single element or F/S, what should the auditor consider?

A

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

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2
Q

T/F: if the auditor is asked to audit the equity section of the balance sheet, the auditors should audit the entire f/S?

A

True!

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3
Q

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?

A

False- you would be required to audit both the income statement and balance sheet.

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4
Q

If an auditor only audits a single F/S, can the other documents be included in the same report?

A

Yes, but the audited F/S needs to be distinguished from the other F/S in the report.

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5
Q

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?

A

TRUE- that is speaking out both sides of your mouth

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6
Q

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?

A

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.

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