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8 Cards in this Set
- Front
- Back
List the sections of the Audit Report. Hint: 1, 2, 3, 4, 5, 6, 7, 8 |
1. Title: Independent Audit Report 2. Addressed to the Board of Directors 3. Introductory Section 4. Management's Responsibility Section 5. Auditor's Responsibility 6. opinion 7. Signature 8. Report date = Audit completion date |
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What are the opinions that can be given for an audit report and what do they mean? Hint: A, A1, A2, A3, B |
A. Yes A1. Unmodified - "Fairly Stated" A2. Qualified - "Except for" A3. Adverse - "Not Fairly Stated" B. No opinion can be given |
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What are the 2 reason a Auditor/Client may Departure from GAAS? Hint: 1, 2 |
1. Scope Limitation - Client Imposed 2. Lack of Independence Disclaimer |
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Explain all the ways you can get to an Unmodified, Qualified, and Adverse report in regards to the Departure from GAAP? Hint: A1, A2, B1, C1 |
A1. Unmodified - No Departure from GAAP A2. Unmodified - Yes Departure from GAAP but not material. B1. Qualified - Yes Departure from GAAP and Material but not pervasive. C1. Adverse - Yes Departure from GAAP and Material and Pervasive. |
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Explain all the ways you can get to an Unmodified, Qualified, and Disclaimer report in regards to the Departure from GAAS? Hint: A1, A2, A3, B, C |
A1. Unmodified - Situation cannot be identified. A2.Unmodified - Yes Situation can be identified, No it is not material. A3. Unmodified - Yes Situation can be identified, Yes it is material, yes alternative procedures can be preformed. B: Qualified - Yes Situation can be Identified, Yes it is material, No Alternative Procedures can be performed, No it is not persuasive. C: Disclaimer - Yes Situation can be identified, Yes It is Material, No, Alternative Procedures can be preformed, Yes it is pervasive. |
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What are the 3 ways a group Auditor can issue an unmodified statement and describe in detail what each way entails? |
1. Unmodified - Yes Group Auditor takes fully responsibility of Audit. There is no Mention of CPA 2 or 3 2. Unmodified - No Group Auditor does not take full responsibility and shows the division of responsibility by % Assets & % Responsibilities but does not name CPA 2 or 3. 3. Unmodified - No Group Auditor does not take full responsibility and Attaches Audit Report of CPA 2 & 3. Additionally, the group auditor also gets permission from CPA 2 & 3. |
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What is the purpose of additional paragraphs after the opinion in an Audit Report? Also provide 3 examples. |
After 6A paragraphs are included because they are important and need attention but they do not impact opinion. Examples include 1. Consistency 2. Going Concern 3. Required Supplemental Information |
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What is the purpose of additional paragraphs before the opinion in an Audit Report? |
Before 5A paragraphs are important as they have impacted the opinion. |