AUD Cumulative - Flashcards

1
Q

U.S Generally accepted accounting principles is an accounting term that

A

Encompasses the conventions, rules & procedures necessary to define the U.S. accepted accounting practice at a particular time

GAAS- Measures of the quality of the auditor’s performance, and guide the auditor in the performance of a properly planned & executed audit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

An auditor of nonissue must conduct the audit in accordance with

A

ASB- Auditing Standards Board

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

NON ISSUER GUIDANCE MOST AUTHORITATIVE IS

ISSUER GUIDANCE MOST AUTHORITATIVE IS

A

1- ASB for non Issuer
2- PCAOBAS for issuers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Indicates a presumptively mandatory requirement

A

Should-
Means that the requirement is relevant, except in rare circumstances when departure from the requirement is permitted with appropriate justification or performance of sufficient alternative procedures with appropriate documentation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

To obtain reasonable assurance, an auditor should

A

Plan the work and properly supervise any assistants

-As well as determine and apply appropriate materiality level, identify and assess risks of material misstatement due to fraud or error, & obtain sufficient appropriate audit evidence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The term identifies a requirement for audit evidence

A

Appropriate

Sufficient appropriate audit evidence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Reasonable Assurance

A

High, but not absolute level of assurance to allow an auditor to detect a material misstatement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

In order to form an opinion on the financial statements,

A

The auditor should consider if the financial statements are prepared, in all material respects, in accordance with the requirements of the applicable financial reporting framework.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

In a given scenario where unusual circumstances exist, where the financial statements would be misleading if they were prepared in conformity with GAAP. The auditor should

A

Render an unmodified opinion with an emphasis-of-matter paragraph describing the unusual situation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What would influence an auditor’s decision to modify the audit opinion of an issuer’s financial statements?

A

The effect of a misstatement on the financial statements taken as a whole.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Unqualified Opinion ( unmodified-non issuer)

A

Financial Statements present fairly, in all material respects, the financial position, results of operations & cash flows of the entity inline with Financial reporting framework

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Adverse Opinion

A

Financial Statements do not present fairly the financial position, results of operations or cash flows of the entity in conformity with the applicable financial reporting framework.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Disclaimer Opinion

A

Auditor does not express an opinion on the financial statements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The auditor’s responsibility Paragraph of the unmodified opinion report includes?

A

1-The auditor’s responsibility to express an opinion on the financial statements for a non-issuer under U.S auditing standards
2- Includes- We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly