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15 Cards in this Set
- Front
- Back
- 3rd side (hint)
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How does an auditor evaluate the reasonableness of an accting estimate?
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1. Understand how mnmgt developed it.
2. Figure out what the estimate should look like if you did it. 3. Perform subsequent transaction proc's |
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When may an auditor modify a standard report?
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GAAP departure
Other Auditor Disclosure Going Concern Inconsistency |
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What types of opinions may an auditor issue relating to an uncertainty.
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Unqual, Unqual w explan or disclaim
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What type of opinion should you give if f/s are not presented in conformity with GAAP or when there is inadequate disclosure?
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Unqual, Qual or Adverse
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What's the format of a qual opinion due to a scope limitation or insuffiency of evidential matter?
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Intro - No Effect
Scope- refer to explan para Explan para- explains the scope limitation Opinion- refers to explan language & qual's opinion |
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What is the format of a qual opinion due to a departure from GAAP?
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Intro - No Effect
Scope- No Effect Explan para- explains the departure Opinion- refers to explan language & qual's opinion |
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What is the format of a qual opinion due to inadequate disclosure?
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Intro - No effect
Scope - No Effect Explan para - explains nature of the omitted disc and state its requirements w/GAAP Opinion-refers to explan para language and qual's opinion |
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What's the format of a disclaimer of opinion?
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Intro - omits auditor's responsibility to express an opinion
Scope - omitted Explan para-explains why the audit does not comply with GAAS. Opinion-refer to explan para and state not able to express an opinion |
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What's the format of an adverse of opinion?
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Intro - No Effect
Scope- No Effect Explan Para- give reasons for the opinion and effect of item causing the adverse opinion on the f/s Opinion-f/s referred to above do not present fairly.... |
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How do you report on a lack of consistency that has a mat'l effect on the comparability of f/s.
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1. Explan para - refer to change causing the lack of consistency and identify the nature of the change.
2. Disclose the change in a note to the f/s. |
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When do you not refer to the consistent application of accting princples in an audit report?
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1. No changes
2. Immaterial changes |
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If client changes an accting principle, what are the appropriate proc's you should perform?
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1. Determine if new one is GAAP
2. Is the change allowed in GAAP 3. Is mangmt's explanation good? |
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What circumstances would you be req'd to add an explan para to your standard report?
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Other Auditor, Omission or req'd supplemental info, Going concern, emphasize a matter, etc
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GOD C MISSI
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When will you add an emphasis of a matter para w/o qualifying the opinion?
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1. Client is component of a larger entity
2. Significant RPTs 3. Significant subsequent event 4. Comparability of f/s has been affected by an event or trans |
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When should an explan para about req'd supplementary info be added to the standard auditor's report?
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1. Omission of req'd info
2. Deviation of info from GASB/FASB 3. Inability to apply limited proc's 4. Substantial doubt exists as to whether the supplementary info conforms to established guidelines. |
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