AUD Deck

Question 1

There are three levels of guidance for auditing. What are they ranked from most authoritative to least authoritative?

Answer 1

1- SAS (Statement on Auditing Standards) for Nonissuers & PCAOB AS for Issuers. 2- Interpretive Publications. 3- Other Auditing Publications

Question 2

GAAS (Generally Accepted Auditing Standards) measure the ___________ of an auditors performance?

Answer 2

Quality

Question 3

Nonissuer conducts an audit in accordance with ______ standards. The acronym stands for?

Answer 3

ASB ; Auditing Standards Board

Question 4

The following term used within standards indicates a presumptively mandatory requirement

Answer 4

“Should”

Question 5

What is NOT an example of excercising professional skepticism?

Answer 5

Inquirying about info over a prior year engagement

Question 5

For audited financials the auditor’s responsibilities are confined to?

Answer 5

The expression of the auditor’s opinion.

Question 6

In an audit to gain “reasonable assurance” an auditor should

Answer 6

Plan the work and then properly supervise any assistants

Question 7

What kind of evidence in an audit are we looking for?

Answer 7

“Sufficient Appropriate audit evidence”

Question 8

*** (Important Principle)
When you encounter issues performing an audit you need to determine 1st whether its a _______ _______ issue which could result in a “Qualified” or “Adverse Opinion” or if its a __________ issue and will result in a “Qualified” or “Disclaimer” Opinion (Think Temperature Chart).

Answer 8

Financial Statement ; Auditing

Question 9

Is a Unmodified opinion with an emphasis-of-matter paragraph considered modified?

Answer 9

No

Question 10

What would cause us to conclude that we should give a qualified opinion. What’s the key that will let us know if we need to push it to an adverse/disclaimer of opinion?

Answer 10

Material Misstatement ; Pervasiveness (Not = Qualified, Is = Adverse/Disclaimer)

Question 11

When financial statements contain a departure from U.S. GAAP because, due to unusual circumstances, the statements would otherwise be misleading, the auditor should express an opinion that is?

Answer 11

Unmodified (because they have made them so they AREN’T misleading.)

Question 12

Word “Independent” goes in the _________ title. Identification of the applicable financial reporting framework should go in the ________ paragraph?

Answer 12

Report ; Opinion

Question 13

The opinion paragraph in an auditors report will include?

Answer 13

Nature of engagement, financial statements covered, entity that was audited, and dates covered by each financial statement

Question 13

An auditor’s responsibility to express an opinion on the financial statements of a nonissuer under U.S. auditing standards is?

Answer 13

Explicity called out in the Auditor’s Responsibility paragraph