Audit 1 Module 4 - Unmodified | Unqualified Opinion

Question 1

Unmodified-

Answer 1

Auditor concludes that FS are presented fairly, in all material respects, in accordance w applicable financial reporting framework

Question 2

Auditors report date:

Answer 2

FINAL date of auditor responsibility

Question 3

Which standards go where for unmodified (Nonissuers) audit opinion:
GAAS
GAAP

Answer 3

GAAS - auditors responsibility paragraph
GAAP - managements responsibility and opinion paragraph

Question 4

Critical audit matters (CAM)

Answer 4

-Related to accounts or disclosures that are material to FS
-involved especially challenging, subjective, or complex auditor judgement

Question 5

For each CAM, audit report should include (IPAD)

Answer 5

1. IDENTIFICATION of the CAM
2. PRINCIPAL considerations that led auditor to determine the matter was a cam
3. How the cam was ADDRESSED
4. Reference to relevant FS accounts or DISCLOSURES

Question 6

Where standards go for an unqualified opinion (issuer)
PCAOB
GAAP

Answer 6

PCAOB- basis for opinion
GAAP - opinion on FS statements

Question 7

Form AP (filed by 35th day after audit report) includes:

Answer 7

Name of firm
Name of the issuer who’s FS are audited
Date of audit report
End date of most recent periods FS
Name of engagement partner
City/state of office of firm issuing audit report

Question 8

When financial statements contain a departure from US GAAP because, due to unusual circumstances, the statements would otherwise be misleading, the auditor should express and opinion that is

Answer 8

Unmodified

Question 9

Qualified opinion- misstatements are

Answer 9

Material but not pervasive

Question 10

Adverse opinion- misstatements are

Answer 10

Material and pervasive