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18 Cards in this Set
- Front
- Back
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M
r D i m R e p p o r t s C r a m e |
Mr - Management is responsible for the preparation & fair presentation of F/S
Dim - design, implementation, and maintenance of I/C Re - Our responsibility is to express an opinion p - plan & perform audit to obtain reasonable assurance po - audit involves performing procedures to obtain audit evidence r - assessment of risks of mat'l misstatement of F/S t - auditor considers internal control (test) relevant to entity's F/S preparation s - fair presentation of financial statements c - opinion on effectiveness of entity's internal control ram - evaluating the appropriateness of acct. policies used & resonableness of acct. estimates by mgmt. e - evaluating overall presentation of F/S |
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Auditor's Consideration of an Entity's Ability to Continue as Going Concern
(Procedures to Perform) A d m i t s (Events/Conditions indicative of Substant. doubt) F i n e |
A - Analytical procedures
d - Debt compliance m - Board of Director minutes i - Inquiry of client's legal counsel t - 3rd prty, confirm details of fin. support arrangements s - Subsequent events review F - Financial difficulties (loan defaults, denial of usual trade credit) I - Internal matters(labot difficultities, work stoppages) N - Negative trends (recurrent losses, WC deficiencies) E - External matters (legal/patent issues, loss of main supplier) |
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Audit Report Summary - Group Audit - Assume Responsibility
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UNMODIFIED OPINION
Intro. Para. = Standard Mgmt. Responsibility Para. =Standard Auditor Responsibility Para. = Standard Basis for Opinion Para. = No Opinion Para. = "Present fairly" Emphasis-of-Paragraph Para. = No |
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Audit Report Summary - When there's a going concern issue & there's adequate disclosure
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UNMODIFIED OPINION
Intro. Para. = Standard Mgmt. Responsibility Para. =Standard Auditor Resp. Para. = Standard Basis for Opinion Para. = No Opinion Para. = "Present fairly" Emphasis-of-Paragraph Para. = Yes |
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Audit Report Summary - When there's a going concern issue & there's inadequate disclosure (material misstatement)
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QUALIFIED/ADVERSE OPINION
Intro. Para. = Standard Mgmt. Responsibility Para. =Standard Auditor Resp. Para. = Name Type of Modified Opinion Basis for Opinion Para. = Yes Opinion Para. = "Except for/Do not Present Fairly" Emphasis-of-Paragraph Para. = Yes |
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Audit Report Summary - When there's a sigificant going concern uncertainity
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DISCLAIMER OF OPINION
Intro. Para. = "Engaged to Audit" Mgmt. Responsibility Para. =Standard Auditor Resp. Para. = "Not able to obtain..." Basis for Opinion Para. = Yes Opinion Para. = Disclaimer Emphasis-of-Paragraph Para. = No |
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Audit Report Summary - When a justified lack of consistency
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UNMODIFIED OPINION
Intro. Para. = Standard Mgmt. Responsibility Para. =Standard Auditor Resp. Para. = Standard Basis for Opinion Para. = No Opinion Para. = Present Fairly Emphasis-of-Paragraph Para. = Yes |
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Audit Report Summary - When there's a Immaterial misstatement
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UNMODIFIED OPINION
Intro. Para. = Standard Mgmt. Responsibility Para. =Standard Auditor Resp. Para. = Standard Basis for Opinion Para. = No Opinion Para. = Present Fairly Emphasis-of-Paragraph Para. = No |
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Audit Report Summary - When there's a Material but not pervasive misstatement
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QUALIFIED OPINION
Intro. Para. = Standard Mgmt. Responsibility Para. =Standard Auditor Resp. Para. = Name type of modified opinion Basis for Opinion Para. = Yes Opinion Para. = "Except for..." Emphasis-of-Paragraph Para. = No |
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Audit Report Summary - Material and Pervasive misstatement
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ADVERSE OPINION
Intro. Para. = Standard Mgmt. Responsibility Para. =Standard Auditor Resp. Para. = Name type of modified opinion Basis for Opinion Para. = Yes Opinion Para. = "Do not present fairly..." Emphasis-of-Paragraph Para. = No |
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Audit Report Summary - Scope Limitation - Immaterial
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UNMODIFIED OPINION
Intro. Para. = Standard Mgmt. Responsibility Para. =Standard Auditor Resp. Para. = Standard Basis for Opinion Para. = No Opinion Para. = "present fairly..." Emphasis-of-Paragraph Para. = No |
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Audit Report Summary - Scope Limitation - Material but not pervasive
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QUALIFIED OPINION
Intro. Para. = Standard Mgmt. Responsibility Para. =Standard Auditor Resp. Para. = Name type of modified opinion Basis for Opinion Para. = Yes Opinion Para. = "except for..." Emphasis-of-Paragraph Para. = No |
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Audit Report Summary - Scope Limitation - Material and pervasive
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DISCLAIMER OF OPINION
Intro. Para. = Engaged to Audit Mgmt. Responsibility Para. =Standard Auditor Resp. Para. = "Not able to obtain..." Basis for Opinion Para. = Yes Opinion Para. = Disclaimer Emphasis-of-Paragraph Para. = No |
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Audit Report Summary - Uncertainity but no material misstatement and sufficient evidence
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UNMODIFIED OPINION
Intro. Para. = Standard Mgmt. Responsibility Para. = Standard Auditor Resp. Para. = Standard Basis for Opinion Para. = No Opinion Para. = Present fairly Emphasis-of-Paragraph Para. = May be necessary |
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Audit Report Summary - Uncertainity and material misstatement
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QUALIFIED/ADVERSE OPINION
Intro. Para. = Standard Mgmt. Responsibility Para. = Standard Auditor Resp. Para. = Name type of Modified Opinion Basis for Opinion Para. = Yes Opinion Para. = "Except for/Do Not Present fairly..." Emphasis-of-Paragraph Para. = No |
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Audit Report Summary - Insufficient evidence (scopt limitation)
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QUALIFIED/DISCLAIMER OPINION
Intro. Para. = Engaged to Audit Mgmt. Responsibility Para. = Standard Auditor Resp. Para. = Type of Mod. Opinion/Not able to obtain Basis for Opinion Para. = Yes Opinion Para. = Disclaimer Emphasis-of-Paragraph Para. = No |
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Updating (changing) Prior Opinion for a Report
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Disclose the reason(s) in a matter of opinion paragraph.
D - Date of auditor's prev. report O - Opinion type prev. issued R - Reason for prior opinion C - Changes that have occurred S - Statement that the "opinion...is different" |
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Auditor's Responsibility for Subsequent Events (b/w date of F/S & date of subsequent period)
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P - Post balance sheet transactions (Review cutoffs)
R - Representation letter obtained by mgmt. I - Inquire mgmt. if any subseq. events occurred M - Minutes of Stockholder mtgs. E - Examine latest interim F/S |
