stuff I won't miss again Flashcards
why should limited procedures be applied to supplementary information?
to determine if the required supplementary info is fairly presented
for a going concern, when should the auditor include:
unmodified + emphasis of matter paragraph
VS
unmodified + going concern paragraph
emphasis of matter: mgmt is able to alleviate going concerns
going concern: mgmt is unable to alleviate going concern
PY: compilation
CY: review
what kind of reference should be made in the CY’s report?
PY’s compilation report should be updated and issued as the last paragraph in CY’s report
financial forecasts are based on [reason] while financial projections are based on [reason]?
expected results, hypothetical assumptions
what is the difference in expression between an audit report vs a review report?
audit renders an opinion
review renders a conclusion
when is obtaining an understanding of internal control appropriate for a review of FS?
when the FS are audited
what should an auditor do if a material weakness is found?
express adverse opinion
the lead/coordinating/reviewing partner must rotate off the audit every [# of years]?
5 years
how do entities qualify for the single audit act?
they expend more than $750,000 of federal financial assistance
does an internal auditor qualify in the 1-year cooling off period?
no
(only CEO/CFO/CAO/Controller)
if an auditor is unable to perform limited procedures in a review of FS, what should they do?
not issue a review report
what type of assurance is provided for compliance reports?
negative assurance
when do overdue audit fees impair independence?
when fees are overdue for more than a year
under the Code of Conduct, a justifiable departure from GAAP includes:
new legislation
new form of business transaction
when FS contain a departure from GAAP bc, due to unusual circumstances, the statements would otherwise be misleading, the auditor’s opinion should be:
unmodified
