Reporting on Audit Engagements Part 3

Question 1

_______ allows financial or integrated audits for nonissuers

Answer 1

GAAS

Question 2

when expressing a qualified opinion due to a scope limitation, there are two changes to the report:

Answer 2

1. opinion section (titled “Qualified Opinion”) states: except for the possible effects of matters explained in the basis for qualified opinion section, F/S are fairly presented
   REFERENCE TO THE SCOPE LIMITATION ITSELF IS NOT MADE
2. basis for opinion section (titled “Basis for Qualified Opinion”) explains the scope limitation

Question 3

audit report is addressed to

Answer 3

whoever engaged the auditor

Question 4

consistency

Answer 4

refers to the use of the same accounting methods for similar items or transactions from period to period

Question 5

so long as the difference between the treatment of international and domestic inventory is disclosed in the F/S…

Answer 5

no change is required to the standard audit report

Question 6

SEPARATE REPORT ON A NONISSUER’S ICFR

Answer 6

report on ICFR
opinion on ICFR
basis for opinion
responsibilities of management for ICFR
auditors responsibilities for the audit of ICFR
definition and inherent limitations of ICFR

Question 7

SEPARATE REPORT ON A NONISSUER’S ICFR: report on ICFR

Answer 7

introductory paragraph identifies entity
states ICFR was examined or audited
includes date of the assessment
criteria used (eg. COSO)

Question 8

FOR AN UNMODIFIED OPINION
KAM section should include a statement that a separate opinion…

Answer 8

is not expressed on them AND
-separate appropriate subheading
-reference to any related disclosures
-explanation of why the matter was key to the audit
-a description of how the matter was addressed in the audit