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Flashcards in Deck 1 Deck (20):
1

What report is needed when an uncertainty that cannot be reasonably estimated is adequately disclosed?

Unmodified opinion with no emphasis-of-matter paragraph

2

Other information

Information that is presented in the same document containing the audited financial statements that is voluntarily presented

3

Basic financial statements

Financial statements presented in accordance with an applicable financial reporting framework, such as GAAP

4

Required supplementary information

Information that is required by the SEC to accompany a entity's basic financial statements

5

What report/opinion is needed when substantial doubt about entity's ability to continue as a going concern is properly disclosed?

Generally add emphasis-of-matter paragraph but may also disclaim opinion based on judgement

6

Subsequent event

events that occur after the balance sheet date but before the financial statements are issued

7

What is included in an emphasis-of-matter paragraph

- Quarterly financial data required by SEC is omitted
- Material change in accounting principle
-

8

Disclaimer of opinion is needed when?

Scope limitation or independence problem

9

Review report

Issued in connection with a limited review of interim financial information of a publicly held company

10

The auditor's report on summary financial statements derived from audited statements should include:

1. the CPA audited and expressed an opinion on the complete financial statements
2. Date of the auditor's report
3. Type of opinions expressed
4. whether the information is consistent, in all material respects.

11

OCBOA

Other comprehensive basis of accounting (cash, tax, and regulatory bases of accounting)

12

What title is suitable for financial statements that are prepared on a cash basis?

Statement of revenues collected and expenses paid

13

Special purpose framework

financial basis of accounting other than GAAP that includes cash basis, tax basis, regulatory basis, and contractual basis

14

What should the title of the OCBOA report be?

Independent auditor's report

15

Special consideration reports

- Special purpose framework (cash or tax basis)
- Single financial statements and specific elements
- Reporting on compliance
- Summary financial statements

16

Cash basis framework

Basis of accounting used to record cash receipts and disbursements

17

Special purpose framework (emphasis-of-matter)

Alerts readers about the preparation in accordance with a special purpose framework

18

Special purpose framework (other-matter)

Restricting the use of the auditor's report

19

MR DIM

M: management's
R: responsibility
D: design
I: implementation
M: maintenance

20

What report should an auditor issue for inadequate disclosure?

Qualified opinion