M4

Question 1

OBRA Required section

Answer 1

Opinion
Basis for opinion
Responsibilities of mgmt (nonissuer)
Auditor responsibilities (nonissuer

Question 2

What is contained in the opinion section

Answer 2

Title
The entity
A stmt that the f/s have been audited
dates covered
auditor’s opinion
the applicable framework

Question 3

What is contained in the basis for opinion

Answer 3

heading
A stmt the audit was conducted in accordance with GAAS and originates from the US
a reference to the auditor’s responsibilities under GAAS
a stmt the auditor is independent
a stmt whether the auditor believes that the evidence obtained is sufficient and appropriate to provide basis for opinion

Question 4

What is contained in mgmt responsibilities

Answer 4

Mgmt is responsible for fair preparations and presentation of F/S
Mgmt is responsible for internal controls

Question 5

What is contained in the auditor’s responsibilities

Answer 5

A statement that the objective is to obtain reasonable assurance
A statement that reasonable assurance is a high level of assurance but not absolute
A statement that the likelihood of fraud is higher than error
A statement that misstatements are material if they would influence the judgement of a reasonable user.
Description of the audit

Question 6

What are KAM

Answer 6

Areas with a higher assessed risk of misstatement
areas requiring significant auditor and mgmt judgement
*should not include matters giving rise to a qualified opinion or substantial doubt about an entity’s ability to continue as a going concern
*Cannot communicate KAMs when an adverse opinion is rendered

Question 7

Identification of CAM (IPAD)

Answer 7

Identify each CAM
Describe the princiapl considerations tthat led to this determination
Describe how they were addressed
Refer to relevent f/s and disclosures