AUD 2

Question 1

Piecemeal opinions are no appropriate for?

Answer 1

For a disclaimer of opinion or a adverse opinion.

Question 2

Financial statements prepared on an accounting basis other than GAAP the auditor should?

Answer 2

Include an emphasis of matter paragraph that states that the special purpose framework is a basis other than generally accepted GAAP.

Question 3

If financial statements are not correctly titled the auditor should?

Answer 3

Qualify the opinion with a basis for modification report.

Question 4

Special purpose framework includes?

Answer 4

Cash basis, tax basis, regulatory basis, and contractual basis.

Question 5

The objective of a review of financial statements is to?

Answer 5

Is to determine if there should be material modification to the reports to comply with GAAP.

Question 6

Comfort letters are signed by?

Answer 6

The auditors.

Question 7

When is an accountant required to comply with SSARS?

Answer 7

When submitting unaudited financial statements.

Question 8

Independence is….

Answer 8

Implied.

Question 9

In a review versus a compilation an engagement letter is?

Answer 9

Review - Required; Compilation - Not Required.

Question 10

A review provides _____________ assurance and a compilation provides _____________ assurance.

Answer 10

Limited and no.

Question 11

Analytic procedures…..

Answer 11

Involve the use of both financial and relevant non-financial data.