SU 16 Flashcards

1
Q

T or F Changes in accounting estimates do not require an emphasis of matter paragraph.

A

True

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2
Q

Mgmt is responsible for estimating the effects of future events

A

They can’t get conclusive evidence but they must 1. Estimate future events and if that’s not possible 2. Make required disclosures.

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3
Q

Things a predecessor auditor should do before reissuing a report

A

Read the current financial statements and compare it with the prior statements.

Obtain a representation letter from the current auditor and management.

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4
Q

Under PCAOB standards an emphasis of matter paragraph is required T or F

A

False. It is never required.

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5
Q

Emphasis of matter

A

Reports on special purpose statements require the auditor to add an emphasis of matter paragraph to the report.

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6
Q

emphasis of matter

A

This is not used to draw attention to an audit procedure, only matters presented or disclosed in the FS.

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