A1&2

Question 1

Audit report refers to GAAS in which paragraphs?

Answer 1

Auditor’s Responsibility & Basis for Opinion

Question 2

Audit report refers to GAAP in which paragraphs?

Answer 2

Mgmt’s Responsibilities & Auditor’s Opinion

Question 3

Before expressing an opinion on Supplementary Information of a nonissuer, auditor must first ensure what?

Answer 3

Neither an adverse nor disclaimer of opinion was expressed on the Financial Statements. If adverse/disclaimer was expressed, can’t express an opinion on Supplementary info.

Question 4

Critical Audit Matters must be communicated to:

Answer 4

Those charged with governance

Question 5

How long must audit documentation be retained? (nonissuers vs. issuers)

Answer 5

Nonissuers: 5 years
Issuers: 7 years

Question 6

Hierarchy of audit documentation’s reliability

Answer 6

1. Auditor’s personal inspection/procedures
2. External evidence given directly to the auditor
3. External evidence given from mgmt
4. Internal evidence
5. Oral evidence from mgmt

Question 7

Opinion to be rendered if sub and parent use different acceptable accounting principles (therefore lacking comparability)

Answer 7

Unmodified, if both are acceptable under GAAP, doesn’t impact opinion