A1

Statements on Standards for Accounting and Review Services (SSARS) Section reference: Standard setting body: What type of entity: Applies to:

AR-C, AICPA accounting and review services committee, non issuer, unaudited financial information

Statements on Standards for Attestation Engagements (SSAE) Section reference: Standard setting body: Applies to:

AT-C, AICPA, attestation engagements

Statements of auditing standards Section reference: Standard setting body: What type of entity: Applies to:

AU-C, AICPA Auditing standards board, non issuers, audits

If an accounting change has no material effect on the financial statements in the current year, but the change is reasonably certain to have a material effect in later years, the change should be: A. Referred to in the auditor's report for the current year. B. Disclosed in the notes to the financial statements of the current year. C. Disclosed in the notes to the financial statements and referred to in the auditor's report for the current year. D. Treated as a subsequent event.

C

Code of professional conduct Section reference: Standard setting body: Applies to who: Applies to what:

ET, AICPA, members, behavior

GAAP or GAAS: adverse opinion

GAAP

GAAP or GAAS: disclaimer of opinion

GAAS

what guides the auditor in the performance of a properly planned and executed auditor?

GAAS

For non issuer audit reports: what standards apply to the auditor's responsibility paragraph? what standards apply to the management's responsibility paragraph and opinion paragraph?

GAAS, GAAP

GAGAS Section reference: Standard setting body: What type of entity:

GAGAS, governmental accountability office, government

The title of the OCBOA report should be

Independent Auditor's Report

PCAOB auditing standards Section reference: Standard setting body: What type of entity: Applies to:

PCAOB AS, PCAOB, issuers, audits

what standard/guideline should be used for review of quarterly financial statements of a public company?

PCAOB auditing standards

Statements on Quality Control Standards (SQCS) Section reference: Standard setting body: Applies to who: Regarding what:

QC, AICPA, CPA firms, quality control systems

Nonissuer: the auditor's responsibility section relates to GAA__ while the opinion paragraph relates to GAA__.

S, P

Headings of qualified opinion (GAAP problem) report for non issuer

Title Intro Management responsibility Auditor responsibility* Basis for qualified opinion* Qualified opinion*

Headings of adverse opinion report for issuer

Title Opinion Additional paragraphs* Basis for opinion

Headings of unqualified opinion report

Title Opinion Basis for opinion CAMs

Headings of disclaimer of opinion for issuer

Title disclaimer of opinion* additional paragraph* Basis for disclaimer*

Headings of unmodified opinion report

Title Intro Management responsibility Auditor responsibility Auditor opinion

Headings of disclaimer of opinion for non issuer

Title, Intro*, Management responsibility, Auditor responsibility*, Basis for disclaimer*, Disclaimer opinion*

Headings of qualified opinion (GAAS problem) report for non issuer

Title, Intro, Management responsibility, Auditor responsibility*, Basis for qualified opinion*, Qualified opinion*

Headings of qualified opinion (GAAP problem) report for issuer

Title, Opinion, Additional paragraph*, Basis for opinion, CAMs

Headings of adverse opinion report for non issuer

Title, Intro, management responsibility, auditor responsibility*, Basis for adverse opinion*, Adverse opinion*

Headings of qualified opinion (GAAP problem) report for issuer

Title, Opinion, Additional paragraphs*, Basis for opinion, CAMs

What encompasses the conventions, rules, and procedures necessary to define US accepted accounting practices at a particular time?

US GAAP

Auditing procedures relate to _____ to be _________, while auditing standards relate to the ________ of the ______ of those ______.

acts, performed, quality, performance, acts

management imposed scope limitations never result in what opinion?

adverse

CAMs are omitted in the reports for issuers for what opinion(s)?

adverse, disclaimer

when information accompanying basic FS has been subjected to auditing procedures, the auditor may include that the information is fairly stated in

all material respects in relation to the financial statements as a whole

Emphasis of matters paragraphs refer to matters that are _________ _______ while other matters paragraphs refer to matters ______ _____ _____ ______.

appropriately presented, other than those presented

In referencing the audit of a component auditor, what paragraphs are revised for non issuers? 1. 2. For issuers? 1. 2.

auditor responsibility, opinion, opinion, basis for opinion

the auditor's responsibility for subsequent events stops at what date? the date of the

auditor's report

if an auditor is unable to form an opinion on a new client's opening inventory, the auditor will issue an opinion only on the closing _________ ______.

balance sheet

Qualified or Adverse reports (GAAP issues) - Non issuer: 1. 2. Issuer: 1. 2. 3.

basis for opinion, opinion, opinion, additional paragraph, basis for opinion

Non issuer: basis then opinion or opinion then basis? Issuer?

basis, opinion, opinion, basis

When an updated opinion differs from the previous one, the auditor must disclose D O R C S

date of previous audit report, opinion previously issued, reason for prior opinion, changes that have occurred, statement that the opinion is different

When a former client requests that a predecessor auditor reissue a report on prior statements, what date should be used as long as: -the financial statements are not restated -the report is not revised -no significant changes that would affect prior statements have occurred?

date of prior period report

auditor is not required to report CAMS when what opinion is given?

disclaimer

GAAP allows a company to use different inventory costing methods for different inventories as long as the methods are

disclosed

if an accounting change has no material effect on the current year financial statements but is reasonably certain to have an effect in later years, the change should be _________ in the financial statements for the _______ year.

disclosed, current

If an accounting change has no material effect on the comparability of the financial statements, the auditor does/does not need to recognize the change in current year's report.

does not

When are emphasis of matters paragraphs required? G A A S/P

doubt about going concern, justified accounting principle change, audit opinion change, special purpose framework preparation

a material change in accounting principle results in what for a non issuer?

emphasis of matter paragraph

Additional information that is added to the auditor's report without modifying the auditor's opinion. Non issuers use the terms _______ ____ _______ and ______ _______. Issuers use the term __________ _________.

emphasis of matter, other matter, explanatory paragraph

the auditor should address the report to the entity that

engaged them

the partner or person in a firm who is responsible for a group audit engagement is called the _________ _______ by the AICPA (non issuer) and the _______ ______ by the PCAOB (issuer).

engagement partner, principal auditor

non issuers may choose between what 2 kinds of audits? issuers are required to have what kind of audit?

financial statement audit, integrated audit, integrated audit

what standard/guideline should be used for an audit of a city?

generally accepted government auditing standards

a reporting accountant is prohibited from providing a report on the application of the requirements of an applicable financial reporting framework to ________ transactions which are those defined as not involving the ______ and __________ of a specific entity

hypothetical, facts, circumstances

does the auditor's report explicitly state or imply that the financial statements are comparable between periods?

implies

Title of auditor's report for non issuer

independent auditor's report

What two items are only adjusted for a disclaimer of opinion report for a non issuer?

introductory paragraph, auditor's responsibility paragraph

Public companies must evaluate subsequent events through the date that the financial statements are: All others must evaluate subsequent events through the date that the financial statements are:

issued, available to be issued

for additional information outside of the basic FS but required by FASB, auditor should apply certain _______ _____ and add an ______ ______ ______ (non issuer)

limited procedures, other matters paragraph

Before reissuing the prior year's auditor's report on the financial statements of a former client, the predecessor auditor should obtain letters of representation from the 1. 2.

management of former client, successor auditor

Unmodified is the term used for ___________ while unqualified is the term used for _____________.

non issuers, issuers

a description of how the income tax basis differs from GAAP should be included in the

notes to the financial statements

the auditor's report should be dated no earlier than the date on which the auditor

obtained sufficient appropriate audit evidence

the auditor's report should be dated no earlier than the date on which the auditor has

obtained sufficient appropriate audit evidence

emphasis of matter, other matter, and explanatory paragraphs go after what item?

opinion

3 body parts of auditor's report for issuer

opinion on financial statements, basis for opinion, critical audit matters

When the report of a predecessor auditor is presented: What date is used when unrevised? What date is used when revised?

original report date, dual date

what kind of paragraph is used by non issuers to restrict the use of the auditor's report?

other matters

4 steps to getting reasonable assurance: 1. ______ work and ______ ______ assistants 2. determine and apply ________ ________ 3. identify and assess risk of _________ ________ 4. obtain ________ __________ ________ _______

plan, properly supervise, materiality levels, material misstatement, sufficient appropriate audit evidence

when the auditor of a non issuer qualifies the opinion because of a scope limitation, the wording should indicate that the qualification pertains to what?

possible effects on the financial statements

"should" indicates what kind of requirement?

presumptively mandatory

if a company issues financial statements and purports to present financial position and results of operations but omits the related statement of cash flows, the auditor will ordinarily express what opinion?

qualified

financial statements prepared in accordance with a comprehensive basis of accounting other than GAAP that are not suitably titled require what opinion with what extra thing?

qualified opinion with a basis for modification paragraph

when there is a lack of sufficient and appropriate audit evidence or scope restrictions, what 2 opinions could be issued depending on materiality?

qualified, disclaimer

scope limitations result in either a _______ opinion or an ________ opinion because it is a ______ issue

qualified, disclaimer, GAAS

GAAS measures what?

quality of auditor's performance

Objectives of audit engagements for issuers: 1. objectives of financial statement audits - obtain _________ _______ about whether FS free from MM -__________ on the FS and __________ as required by GAAS 2. objectives of audit of IC over financial reporting -_________ an ________ on the __________ of the IC -________ and _________ the audit to obtain _______ ______ ______ ________ about whether material weaknesses exist

reasonable assurance, report, communicate, express, opinion, effectiveness, plan, perform, sufficient appropriate audit evidence

when audited financial statements are presented in comparative form with unaudited financial statements from a prior year, the auditor should either: 1. _______ the report on the unaided statements or 2. include a ________ _______ in the current year report describing the _________ _______ for the unaudited statements

reissue, separate paragraph, responsibility assumed

title of auditor's report for issuer

report of independent registered public accounting firm

For qualified or adverse reports, non issuers have opinion first or second? issuers have it first or second?

second, first

reporting on a single statement is a ________ consideration in the application of _____ _________

special, US GAAS

what standard/guideline should be used for guidance for unaudited financial statements or unaudited financial information of non issuers?

statements on standards for accounting and review services

what standard/guideline should be followed for the preparation of the financial statements of a non-issuer?

statements on standards for accounts and review services

what standard/guideline should be followed for the examination of MD&A for a public company?

statements on standards for attestation engagements

reasonable assurance is obtained when the auditor has obtained _________ _______ _______ ______ to ________ ______ ______ to an _______ _______ ______.

sufficient appropriate audit evidence, reduce audit risk, appropriately low level

SSARS only applies to __________ information of ___________.

unaudited, non issuers

"must" or "is required" indicates what kind of requirement?

unconditional

If management (of a governmental body) declines to present supplementary information required by the Governmental Accounting Standards Board (GASB), the auditor should issue a(an):

unmodified opinion with an other matters paragraph

does the auditor have to include an emphasis of matter paragraph if there is substantial doubt about going concern even if it is fully disclosed in the financial statements?

yes