Reports

Question 1

Lawsuits that are “Reasonably Possible”

Answer 1

1) Require Disclosure Only

2) If not Disclosed = Qualified or Adverse

Question 2

Lawsuits that are “Unusually Important”

Answer 2

May add Emphasis of Matter Paragraph

Question 3

Subsequent discovery of facts that lead to a change in audit opinion

Answer 3

Either Emphasis of Matter or Other Matter paragraphs

Question 4

What statement should be included on an Auditor’s report on Supplemental Information

Answer 4

Supplemental information has been subjected to auditor procedures performed in conjunction with the audit of F/S

Question 5

ISA requires an auditor to withdraw if

Answer 5

Management imposed scope limitation could lead to an opinion that is both Material and Pervasive

Question 6

What is incomplete presentation in accordance with GAAP

Answer 6

Single F/S. Auditor is allowed to audit this

Question 7

Emphasis of Matter paragraph in regards to incomplete presentation according to GAAP

Answer 7

1) Purpose that the presentation is prepared
2) Refer to the notes in F/S that describe basis of presentation
3) Presentation is not intended to be complete presentation of A/L & R/E

Question 8

What Requires a restricted use paragraph

Answer 8

1) Comfort letter
2) Financial Projection
3) Auditor’s report on compliance with regulatory requirements via Audited F/S

Question 9

Financial Forecast states

Answer 9

the CPA has no responsibility to update report for subsequent events

Question 10

IF auditor expresses adverse or disclaimer on F/S - an auditor should issue a report on compliance

Answer 10

ONLY when instances of noncompliance are identified.

Negative assurance is NOT provided

Question 11

Agreed Upon procedures states

Answer 11

We DO NOT express an Opinion