Deck 2 Flashcards Preview

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Flashcards in Deck 2 Deck (17):
1

If the client refuses to accept the CPA's suggestions, the auditor should do what?

Add a paragraph modifying the disclaimer to describe the nature and effect of the departure from GAAP.

2

What opinion is issued when there is a significant scope limitation?

Disclaimer of opinion

3

What opinion is used for going concern issue?

Unmodified opinion with an emphasis-of-matter paragraph OR

Disclaimer of opinion

4

Modifications are made to the standard review report for what reason?

Only when there is a departure from GAAP

5

SSARS

Statements on Standards for Accounting and Review Services (Used for non issuers)

6

Incomplete presentation needs what kind of opinion?

Unmodified with emphasis-of-matter

7

Report on specific element or account needs what kind of opinion?

Unmodified with other matter

8

What type of assurance is issued on compliance related to audited financial statements?

Negative assurance

9

Where is the report on compliance included?

Other matter paragraph

10

What opinion is appropriate on summary financial statements?

Unmodified or adverse opinion only. Qualified opinion not appropriate

11

When does SSARS apply?

When an accountant PREPARES, COMPILES, or REVIEWS financial statements

12

What procedure is performed by an accountant in a compilation engagement of a nonissuer?

Read the financial statements for obvious financial statements

13

A review engagement is based on what two procedures?

Inquiry and analytical procedures

14

Accounting and review services committee

Is the authoritative body designated to promulgate standards concerning an accountant's association with unaudited financial statements of a nonissuer

15

What is the difference between the objective of a review report and a compilation report?

Review: provides limited assurance that there are no material modifications that should be made to the financial statements
Compilation: provides no assurance

16

Independence is not required on which type of engagement?

Compilation of financial statements; it does not to be disclosed though

17

Attest engagements

An engagement in which a practitioner is engaged to issue or does issue an examination, a review, or an agree-upon procedures report on subject matter