Rpts on Audited FS

Question 1

Unmodified Opinion =

Answer 1

clean opinion

Question 2

Unmodified Opinion report headings

Answer 2

1. Title
2. Addressee
3. Introductory Paragraph
4. Managements Responsibility
5. Auditor’s Responsibility
6. Auditor’s Opinion
7. Other Reporting responsibilities
8. Signature of Auditor
9. Auditors address
10. Date of the Auditors Report

Question 3

Managements Responsibility

Answer 3

(MR DIM)
Managements
Responsibility

Design
Implementation
Maintenance

Question 4

Auditors Responsibility

Answer 4

(REPPORTS CRAME)
Responsibilities of Auditor
Express an opinion
Plan and perform audit
Performing procedures
Obtain audit evidence
Risk of material misstatement 
Test of internal controls
Statements, financial fair presentation

Control effectiveness 
Reasonableness of significant
Accounting estimates made by
Management
Evaluating  overall presentation

Question 5

The auditors report date shows

Answer 5

the final date of the auditors responsibility

Question 6

GAAS is in the

Answer 6

Scope Paragraph (auditors responsibility)

Question 7

GAAP is in the

Answer 7

Opinion Paragraph

Question 8

Types of Opinions

Answer 8

1. Unmodified
2. Qualified
3. Adverse (GAAP)
4. Disclaimer (GAAS)

Question 9

Emphasis - of - Matter paragraph is presented

Answer 9

After the opinion, but before other reporting matters

Question 10

Emphasis of Matter paragraph is required when

Answer 10

1. Going Concern
2. Justified chg in acting principle
3. Chg in audit opinion
4. Special Purpose framework used

Question 11

Other reporting matter paragraph is required when

Answer 11

1. Auditor restricts use of report
2. chg in audit opinion
3. fs audited by predecessor not reissued
4. material inconsistency
5. report on supplementary info
6. restrict the use, special purpose framework
7. compliance report

Question 12

Use the emphasis of matter paragraph to

Answer 12

report on matter that is presented or disclosed properly but is fundamental to the users understanding

Question 13

Use the other reporting matters paragraph to

Answer 13

report on matters other than what is presented or disclosed but is important

Question 14

Qualified “except for” GAAP

Answer 14

1. Accting policy
2. Presentation
3. Disclosures
4. Estimates

Question 15

Qualified “except for” GAAS

Answer 15

1. Insufficient evidence

Question 16

Adverse GAAP

Answer 16

1. Accting policy
2. Presentation
3. Disclosures
4. Estimates

Question 17

Disclaimer GAAS

Answer 17

1. Insufficient evidence
2. Siginificant going concern uncertainty
3. Lack of independance

Question 18

Withdraw

Answer 18

False, Fraudulent, Deceptive, Misleading

Question 19

Going Concern Procedures

Answer 19

(ADMITS)
Analytical procedures
Debt compliance 
Minutes
Inquiry of clients legal counsel
Third parties
Subsequent events

Question 20

Going Concern Conditions and Events

Answer 20

(FINE)
Financial difficulties
Internal Matters
Negative trends
External matters

Question 21

When a qualified opinion is issued due to lack of sufficient evidence, the lack of evidence should be disclosed in the

Answer 21

Auditors Responsibility paragraph

Question 22

In a report qualified for inadequate disclosure, the auditor would add

Answer 22

a paragraph titled Basis for Qualified Opinion preceding the Opinion paragraph and modified the Opinion paragraph by adding an “except for……” statement

Question 23

Scope limitations caused by inadequate records would cause the auditor to choose between issuing a

Answer 23

Disclaimer or opinion and a qualified opinion

Question 24

Terms required in the explanatory paragraph for going concern is

Answer 24

• Substantial doubt

- Going Concern

Question 25

The introductory paragraph should include

Answer 25

• Entity who is being audited
• a statement that the FS were audited
• Title of each FS audited
• Dates or periods covered by each FS

Question 26

What is the going concern period for (1) us gaap and (2) ISA

Answer 26

US - should not exceed one year

ISA - may be greater than or equal to one year