REPORTING AND POST REPORTING ISSUES Flashcards
What are Written Representations?
They are a written statements provided by management to confirm certain
matters or to support other audit evidence.
What is a Qualified Opinion
A qualified opinion is expressed when the auditors obtain sufficient and
appropriate evidence that material misstatement or scope limitation exists but
is not pervasive to the financial statements. The auditor states in his report
that the financial statements are fairly presented, except for a specified issue
What is an Adverse Opinion
An adverse opinion is expressed when the auditors obtain sufficient and
appropriate evidence that a material and pervasive misstatement exists. The
auditor states in his report that the financial statements are not fairly
presented.
What is a Disclaimer of Opinion
A disclaimer of opinion is expressed when the auditors are unable to obtain
sufficient and appropriate evidence due to scope limitation and conclude that
the effect of such is both material and pervasive to the financial statements.
The auditor states in his report that they were unable to obtain sufficient
appropriate evidence to form an opinion
What are Key Audit Matters?
Matters that, in the auditor’s judgment, were of most significance in the audit
of the financial statements are Key Audit Matters. These are selected from
matters communicated to Those Charged with Governance during the audit
What is an Audit?
An audit is an independent examination of the financial statements. It is a
type of engagement is which reasonable assurance is provided
What is a Review Engagement?
A review is a type of assurance engagement in which limited assurance is
provided.
What are Compilations?
In this engagement the practitioner assists the management in preparation
and presentation of historical financial information.
What are Agreed Upon Procedures?
In Agreed Upon Procedures the auditor carries out procedures of audit
nature to report on factual findings. No assurance is provided in this case.
The procedures are mutually agreed between the entity, third parties and
auditor
