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AUDIT A1 Reports
| Term | Definition |
|---|---|
| Language used by standards to clarify responsibility? | Must or is Required: Unconditional Requirement Should: Preemptively Mandatory May, Might, and Could: Explanatory |
| Most to Least Authoratative Audit Guidance | 1. SAS (Nonissuers) and PCAOB AS (Issuers) 2. Interpretive Publications 3. Other Auditing Publications |
| The Audit Process | Engagement Acceptance Assess Risk and Plan Response Perform Procedures and Obtain Evidence Form Conclusions Reporting |
| Unmodified Audit Report (Nonissuers) | Title Addressee Auditor's Opinion Basis for Opinion Substantial Doubt KAM Responsibilities of Management Auditor's Responsibilities Other Infp Other Reporting Responsibilities Signature of the Auditor CPA Address Date of the Auditor's Report |
| Unqualified Audit Report (Issuers) | Title Addressee Opinion Basis for Opinion CAMs Signature, Tenure, Location Report Date |
| For each CAM the audit report should? | I - Identify the CAM P - Principal Considerations A - Addressed how? D - Disclosures |
| Updated report opinion differs from the previous opinion then the auditor should: | EOM, OM or EM D - Date of Previous Report O - Opinion type previously issued R - Reason for the prior opinion C - Changes that have occurred S - statement that the opinion is different |
| Auditor's responsibility for subsequent events | P - Post BS Transactions R - Rep Letter I - Inquiry M - Minutes E - Examine |
| Other Information Does Not Include: | Press Releases, Cover Letters, Analyst Briefings, Website Info |
| Other Information Material Inconsistency | F.S. Need Revision - Modify the opinion Other Info Needs Revision - Communicate the matter to TCWG and - Consider implications on report, withhold the use of the report and/or withdraw from the engagement and consult with legal counsel |
| Client Refuses to Disclose or Make Adj | D - Disassociate A - Alert Agencies R - Relying Parties |
| Change in Opinion | D- Date of Previous Report O - Opinion Previously Issued R - Reason for Prior Opinion C - Changes that have occurred S - Stmt that "opinion is different" |
| KAM's | R - Report after 2nd Section O - Only when engaged O - Optional N - Never on Adverse or Disclaimer |
| CAM | 1.) Required to be reported to Audit Committee 2.) Relate to Accts or Disclosures Material to the F.S. 3.) Involve Challenging, Subjective, or Complex Auditor Judgement |
| What headings will change for a nonissuer when modified opinions are issued? | Opinion and Basis for Opinion |
| Only opinion that changes report headings for an issuer? | Disclaimer of Opinion |
| An Emphasis of Matter Paragraph is Required when? | C - Consistency (Lack of) A - Audit opinion change P - Purpose (Special Purpose Framework |
| US GAAS are developed and issued in the form of | SAS |
| reducing or delaying expenditures to mitigate the adverse effects of future conditions and events in regard to an entity's ability to continue as a going concern include: | leasing instead of purchasing, operating facilities, increasing ownership equity, borrowing money or restructuring debt |
| Requirements when engages to report on supplemental information | Add audit procedures Audit materiality Nonissuers separate section Issuers report in ex paragraph or a sep report When supp info is req for nonissers but auditor not engaged to audit a seperate section should be included disclaims an opinion the info |
| An adverse opinion and disclaimer both | indicate a material departure from the standards |
| When the group auditor does not assume responsibility of the component the group team should request the component to | C 1.) confirm compliance with ethics C 2.) identify fin info of component C 3.) components overall findings, conclusions or opinion |
| Other Explanatory Material portion of a US GAAS Section | provides further explanation of the requirements of a section and guidance for carrying them out. they are explanatory in nature and not mandatory. |
Created by:
amabwalt