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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





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



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

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.

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.

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.

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



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.