Auditing 17

for each CAM auditor must include....

Principal considerations that led auditor to determine it is a CAM, identification of the matter, reference to the accounts and disclosures affected, and description of how the matter was addressed in the audit

sufficient appropriate audit evidence is obtained when ______ and _____ and _______

all audit documentation has been reviewed and the financial statements prepared, and management has taken responsibility for FS through a representation letter

when comparative financial statements are presented by the client company, the auditors' report should ______

always cover all years presented

if there are material departures from GAAP in the financial statements, auditors must _____ the audit report

modify

The PCAOB requires that CAM be reported ________

only for the period being audited

primary circumstances that result in an audit report with an unmodified opinion but with additional financial statement-related information include ____ _____ and ______

substantial doubt about the company's going concern status, inconsistent application of GAAP, and important subsequent events

a major assumption underlying the inclusion of an EOM paragraph for an uncertainty is ______

the matter is properly disclosed in the notes

for comparative financial statements, the auditor can issue an opinion that cover both years if

the prior year was audited by the firm

for auditors that are reporting on two periods, consistency of GAAP application should be evaluated between the current period and the preceding _____

two periods

a situation in which conclusive audit evidence concerning the ultimate outcome cannot be gathered because the outcome will occur in the future is called a(n) _______

uncertainty

re-expressing or revising an audit opinion that was previously issued is referred to as ______ the report.

updating

CAMS

1) relate to accounts or disclosures that are material to the financial statements 2) involved especially challenging, subjective, or complex auditor judgement 3) communicated to the audit committee

a NONpublic company audit report with a modified opinion includes a _____

Basis for _____ (adverse, qualified, disclaimer) Public is just a second untitled paragraph under opinion

Disclosure requirements come from pronouncements issued by ________ and ________

FASB and GASB

disclosure of the engagement partner's name and certain info about other CPA firms that participated in the audit is required by the PCAOB _______; must be filed within 35 days of when SEC is given the audit report (10 days for new securities)

Form AP

a standard audit report for a public company must include "Report of ________ ________ Public Accounting Firm"

Independent Registered

an unmodified opinion with additional audit-related info included in the audit report is appropriate when ____

a report is filed with comparative statements when there are predecessor auditors

the nature of an audit is outline in the section called ______

auditor's responsibilities

in the auditor's professional judgment, matters that were of most significance in the current period audit of financial statements are defined as _____ audit matters in public company audit reports; international

key

for a change in acct principle, the client must report in the note to the financial statements all of the following ____, ____, ______

nature of, effect of, and justification of

reasonable period of time defined as

nonpublic: one year after the date the financial statements are issued public: a period not to exceed one year from the date of the financial statements

An inabilitty to _____ ________ _______ _______ occurs in situations in which audit evidence should be available and is not

obtain sufficient audit evidence

a ______ ______ ________ indicates the portion of the engagement performed by the component auditors in term of dollars or percentages

shared responsibility report

audit considerations for client-imposed limitations include ____ and _____

the assessment of fraud risk and determining whether or not to withdraw from the engagement

the nonpublic company audit report should be signed with the name of _____

the cpa firm

________ involves a situation that is expected to be resolved at a future date

uncertainty