Flashcards in Deck 24 Deck (20):
When expressing an _____ opinion the auditor will generally not refer to the work or the findings of a specialist
Unmodified (Auditor will make reference to specialist when there is a departure from an unmodified opinion)
What type of evidence is among the most reliable?
Confirmations (example of external evidence)
International Standards on Auditing (ISA) related to internal control communications of non-issuers
- No such thing as material weaknesses; Do not require the report to be restricted (GAAS does); require significant deficiencies to communicated in writing
Inadequate disclosure gives what kind of opinion
Qualified or adverse opinion (GAAP problem)
When an auditor is unable to apply necessary procedures or unable to obtain evidence, what opinion is necessary?
Qualified or disclaimer (GAAS problem)
When auditing according to Government auditing standards, an auditor is to report on:
the scope of the testing of compliance with laws and regulations
Differences between IFAC and AICPA services
A firm is permitted to act in an advocacy role under IFAC but this impairs independence under AICPA; IFAC: not allowed to provide bookkeeping services, allowed under AICPA;
Scope limitation on internal control requires what kind of opinion:
Disclaimer of opinion or withdraw
What opinion is needed when a client omits required supplementary information (required by sec, not gaap)?
unmodified opinion with other matter paragraph
Type 1 Report on internal controls should include what?
Managements description of the service organizations system
Type II report on internal controls provides what?
Operating effectiveness of the internal controls
Use clients application program to process a set of test data; auditor already knows the results
Writing a computer program that duplicates the logic of a client's program, using identical data
Integrated test facility
Utilizes dummy accounts; test data is commingled with live data
Example of an overall response
Providing more supervision during an audit of a nonissuer
When will an auditor refer to the work of a specialist?
When there is a departure from an unmodified opinion; the auditor may need permission from the specialist
Why does an auditor review a client's sales cut-off?
Detect unrecorded sales at year end
What would an auditor most likely perform in searching for unrecorded payables?
compare cash payments made made after the balance sheet date with the accounts payable trial balance
Net realizable value
= AR - AFDA