Lecture 1 (Becker) Flashcards
1
Q
Management’s responsibilities for financial statements (Auditor’s report)
A
Management's Responsibilities Design Implementation Maintenance (1.3)
2
Q
Auditor’s responsibilities for financial statements (Auditor’s report)
A
Responsibility Express an opinion Plan Perform Obtain Risks (assesses) Tests internal control Statements Control Reasonableness Accounting estimates made by Management Evaluate the overall presentation (1.3)
3
Q
Procedures to gather evidence for going concern
A
Gathered from: Analytical procedures Debt compliance Minutes (stockholders and board of directors meetings) Inquiry of client's legal counsel Third parties Subsequent events review (1.3)
4
Q
Conditions and Events that may cause doubt of going concern
A
Financial difficulties Internal matters Negative trends External matters (1.3)
5
Q
Updated/Changed Opinion (format)
A
Date of auditor's previous report Opinion type previously used Reason for the prior opinion Changes that have occurred Statement (that the opinion is different) (1.4)
