Opinions & Additions to Reports

Question 1

Types of Non Issuer (private) Opinions

Answer 1

Unmodified Opinion
Qualified Opinion - FS Issue 
Adverse Opinion - FS Issue
Qualified Opinion - Audit Issue
Disclaimer Opinion - Audit Issue

Question 2

Types of Issuer (Public) Opinions

Answer 2

Unqualified Opinion
Qualified Opinion - FS Issue 
Adverse Opinion - FS Issue
Qualified Opinion - Audit Issue
Disclaimer Opinion - Audit Issue

Question 3

Contents of an Unmodified Opinion Audit Report (Private)

Answer 3

MR DIM REPPORTS CRAME
Management’s Responsibility - Design Implementation, and Maintenance
(auditor) Responsibility to Express an opinion
Plan and perform the audit
Performing procedures to Obtain evidence
Risk of material misstatement
(TEST) internal controls
fair presentation of financial Statements
but not for the purpose of expressing an opinion on the effectiveness of internal Controls
Reasonableness Accounting estimates made by Management Evaluating the overall presentation.

Question 4

Contents of an Unqualified Opinion Audit Report (Public)

Answer 4

Basis for the Opinion Section
RAP MEE RAP MEE
R - Responsibility of the company’s management
R - auditor’s Responsibility
A - Audit conductied
A - Accordance with the standards of PCAOB
P - Plan and
P - Perform to obtain reasonable assurance
M - Material (free from)
M - Misstatement whether due from error or fraud
E- Examining on a test basis
E- Evidence regarding the amounts
E - Evaluating the accounting principles used
E - significant Estimates made by management

Question 5

Qualified and Adverse Opinion

Answer 5

Not Framework (GAAP)
Material Misstatements, Accounting Policies not in accordance with Framework. Policies not applied correctly or consistently.
Qualified - Material
Adverse - Material and Pervasive
Modifications to the Audit Report see Book

Question 6

Qualified and Disclaimer Opinion

Answer 6

Inability to obtain sufficient appropriate audit evidence
Qualified - Material
Disclaimer - Material and Pervasive
The scope of an audit has been limited
ie Time constraints, Refusal of management to provide written representation.

Question 7

Emphasis - of - Matter Paragraph Non-issuer (private)

Answer 7

Immediately after the Opinion paragraph
Required in the following situations: GAASP
G - Going Concern
A - Accounting Principle (change that has a material affect)
A - Audit Opinion (New facts uncover that change it)
SP - Special Purpose Framework ( in accordance other than regulatory basis statements intended for general use).

Question 8

Other - Matter Paragraphs Non-Issue (Private)

Answer 8

Immediately after the opinion paragraph and after the emphasis - of - matter paragraph
Required:
- Restricts use of Auditor’s report
- Facts lead to change an audit report
- Predecessor auditor didn’t reissue the report
- Comparative Form and prior year was not audited

Question 9

Explanatory Paragraph Issuers (Non-Public)

Answer 9

describe the matter being emphasized and the location of relevant disclosures about the matter in the financial statements
Generally follow the opinion paragraph for an unqualified report
Requirements are same as explanatory and other.