Audits of Single F/S and Specific Elements, Accounts, or Items

Question 1

Before accepting the audit engagement to perform an engagement audit on a single element or F/S, what should the auditor consider?

Answer 1

Is it even practicable to perform an audit of a single F/S or element or will the audit require additional information to before the audit

Question 2

T/F: if the auditor is asked to audit the equity section of the balance sheet, the auditors should audit the entire f/S?

Answer 2

True!

Question 3

T/F: if the auditor is asked to provide a opinion on the net income or equivalent such as EPS, the auditor should audit just the income statement?

Answer 3

False- you would be required to audit both the income statement and balance sheet.

Question 4

If an auditor only audits a single F/S, can the other documents be included in the same report?

Answer 4

Yes, but the audited F/S needs to be distinguished from the other F/S in the report.

Question 5

If the auditor issues a adverse opinion the complete set of financial statements, they should not issue an unmodified opinion on a single financial statement?

Answer 5

TRUE- that is speaking out both sides of your mouth

Question 6

If there is an emphasis of matter paragraph that applies to the complete set of F/S, what should the auditor consider with respect to the single financial statement being audited?

Answer 6

Determine whether the emphasis of matter or other matter paragraph relates to the financial statement being audited. if it does related, it should be included in the auditors report.