Reporting on Compliance

Question 1

AT 601 says

Answer 1

instance of material noncompliance, although agreed by management to be included in its written assertions gets a qualified or adverse opinion

-does not allow CPA to perform a review over compliance with specified requirements of a law

Question 2

agreed upon procedures report includes:

Answer 2

statement of limitations on the use of the report because it is intended solely for the use of specified parties
summary of findings
no assurance

Question 3

if an unmodified or qualified opinion on financials identifies noncompliance, then

Answer 3

describe noncompliance

Question 4

if an unmodified or qualified opinion on financials does not identify noncompliance, then

Answer 4

“nothing came to our attention”

Question 5

if a disclaimer or adverse opinion on financials identifies noncompliance, then

Answer 5

describe noncompliance

Question 6

if a disclaimer or adverse opinion on financials does not identify noncompliance, then

Answer 6

no reporting on compliance;
no assurance

Question 7

commenting on compliance with contractual requirements in an audit report on an entity’s F/S should be presented in

Answer 7

an other-matter paragraph

Question 7

other-matter paragraph deals with issues relevant to

Answer 7

the audit engagement OR to auditor’s responsibilities