AUD Cumulative - Flashcards
U.S Generally accepted accounting principles is an accounting term that
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.
An auditor of nonissue must conduct the audit in accordance with
ASB- Auditing Standards Board
NON ISSUER GUIDANCE MOST AUTHORITATIVE IS
ISSUER GUIDANCE MOST AUTHORITATIVE IS
1- ASB for non Issuer
2- PCAOBAS for issuers
Indicates a presumptively mandatory requirement
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
To obtain reasonable assurance, an auditor should
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.
The term identifies a requirement for audit evidence
Appropriate
Sufficient appropriate audit evidence
Reasonable Assurance
High, but not absolute level of assurance to allow an auditor to detect a material misstatement
In order to form an opinion on the financial statements,
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.
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
Render an unmodified opinion with an emphasis-of-matter paragraph describing the unusual situation
What would influence an auditor’s decision to modify the audit opinion of an issuer’s financial statements?
The effect of a misstatement on the financial statements taken as a whole.
Unqualified Opinion ( unmodified-non issuer)
Financial Statements present fairly, in all material respects, the financial position, results of operations & cash flows of the entity inline with Financial reporting framework
Adverse Opinion
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.
Disclaimer Opinion
Auditor does not express an opinion on the financial statements
The auditor’s responsibility Paragraph of the unmodified opinion report includes?
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.
