A1 Flashcards
(25 cards)
Management responsibility
Preparation and fair presentation of FS
Design, implement and maintain IC
Provide the auditor with access to information and persons
Reasonable assurance
Plan the work
Determine materiality level
Identify and assess risks
Obtain sufficient evidence
Auditing standards
GAAS
GAGAS
PCAOB
IAS
Other reporting standards
Statements on standards for attestation engagements
Statements on standards for accounting and review services
Guidelines
AICPA code of conduct Statements of quality control standards SEC SOX IFAC code of ethics
Conduct of the audit
Professional skepticism Ethical requirements Professional judgement Sufficient evidence Compliance with GAAS
Fair presentation
Adequate disclosure of policies Reasonable estimates Information is reliable, relevant, comparable and understandable Terminology is appropriate FS represent underlying transactions
Unmodified opinion content
Title Addressee Introductory paragraph MR (management responsibility) DIM (design, implement and maintain) R (auditor responsibility) E (express opinion) P (plan) P (perform procedures) O (obtain evidence) R (risk assessment) T (test IC)
C (not control effectiveness) R (reasonableness) A (accounting) M (management) E (evaluating)
Auditor’s opinion
Signature
Auditor’s address
Date
Types of opinions
Unmodified Qualified Adverse Disclaimer Withdrawal
Emphasis of matter paragraph
Required or at discretion
Presented or disclosed in FS
Does not affect opinion
After opinion paragraph
Examples: going concern (substantial doubt), justified change, subsequent, litigation, related parties
Other matter paragraph
Restriction of use
Change in opinion
No reissue by predecessor
Going concerns procedures
Analytical Debt compliance Minutes Inquiry of legal counsel Third parties Subsequent events review
Indication of going concern
Financial difficulties
Internal matters
Negative trends
External matters
Going concern mitigation factors
Borrow money
Sell assets
Delay expenses
Increase equity
Qualified/adverse opinion
GAAP Accounting policy Presentation Disclosure Estimate
Qualified/disclaimer
GAAS
Insufficient evidence
Significant going concern
Lack of independence
Qualified/adverse opinion
GAAP Accounting policy Presentation Disclosure Estimate
Qualified/disclaimer
GAAS
Insufficient evidence
Significant going concern
Lack of independence
Form of report
Qualified:
AR - modified
Basis for modification paragraph
Forms of qualified (GAAS)
AR modified
Basis for modification
Qualified opinion
+ introductory paragraph if adverse
Change of opinion disclosure
Date of previous report Opinion type Reason for the prior opinion Changes that have occurred "Opinion is different"
Predecessor auditor should
Read the current statement Compare audited with current Obtain rep letter from current auditor Inquire mgmt rep letter Date as original or dual
Predecessor auditor should
Read the current statement Compare audited with current Obtain rep letter from current auditor Inquire mgmt rep letter Date as original or dual
Subsequent events
Condition before BS date (I) - require adjustment
Condition after BS date () - may require footnote disclosure
