Test 1 Flashcards
what three conditions must be met for auditors to issue a standard unqualified audit report?
1.
2.
3.
describe the eight elements included in a standard unqualified audit report for public companies
1 2 3 4 5 6 7 8
explain the two reporting options that auditors have when their opinion is based in part on the report of another auditor
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in addition to an audit of internal controls describe three situations that require auditors to add an explanatory paragraph to the standard unqualified report
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describe three conditions that might cause auditors to depart from an unqualified opinion
1
2
3
describe three alternatives to the standard unqualified audit report that auditors could choose to use:
1
2
3
describe the relationship between materiality audit risk and evidence:
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what is materiality?
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why is determining materiality important to auditors?
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how does materiality influence the audit process?
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what is audit risk?
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how do auditors manage audit risk
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what is management assertion?
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what makes audit evidence sufficient?
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what makes audit evidence appropriate?
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