CPA- Audit EXAM ACTUAL EXAM/ MOSTLY TESTED QUESTIONS
AND CORRECT DETAILED ANSWERS| 100% CORRECT
SOLUTIONS/GRADE A+
Statements on Auditing
Nonissuers
standards (SAS)
PCAOB AS Issuers
GAGAS Govt auditing standards
SSARS Unaudited FS info for nonissuers
- How SASs should be applied in specific situations
Interpretive publications
- Not considered auditing standards
, Engagement Acceptance --> Assess Risk and Plan
Audit process Response --> Perform procedures and obtain
evidence --> Form conclusions --> Reporting
- Expressing an opinion
- Professional skepticism
- Complying with ethical requirements
Auditor responsibilities
- Professional judgement
- Obtaining sufficient, appropriate evidence
- Complying with GAAS
Auditor must:
- Plan the work, supervise assistants
To obtain reasonable
- Appropriate materiality
assurance:
- Identify, assess risks of material misstatement
- Obtain sufficient appropriate audit evidence
- To report on FS
FS Audit - Objectives - To obtain reasonable assurance about whether FS
are free from material misstatement
Unmodified opinion Nonissuers
Unqualified opinion Issuers
Title
Addressee
Intro
Audit report: Nonissuer Management's responsibility: MR DIM
Auditor's responsibility: REPPORTS CRAME
Auditor's opinion
Other reporting responsibilities
Title
Addressee
Audit report: Issuer Intro: RR
SCOPE: AA PP MM EE AA MM
Opinion
,Form AP Filed by issuer with the PCAOB
Accountant associated with
Disclaim an opinion
unaudited FS
Disclaimer of opinion: Issuer Scope paragraph is omitted
Going concern Emphasis of matter paragraph
Justified change in accounting
Emphasis of matter paragraph
principle
Subsequent facts leading to Emphasis of matter paragraph OR Other matter
change in opinion paragraph
Use of special purpose
Emphasis of matter paragraph
framework
Restricted use of auditor's
Other matter paragraph
report
, Predecessor's report is not
Other matter paragraph
reissued
Current statements with
Other matter paragraph
unaudited prior statements
Material inconsistency that
Other matter paragraph
management refuses to revise
- Other matter paragraph OR
Supplementary info- Auditor
- Separate report
Use restricted due to
Other matter paragraph
Contractual/regulatory basis
Report on compliance included Other matter paragraph
- FS are prepared in accordance with a special
Explanatory paragraph before
purpose framework
opinion when
- Prior year audit opinion is updated
- FS are prepared in accordance with a special
purpose framework
- Prior year audit opinion is updated
Explanatory paragraph:
- Substantial doubt about going concern
required
- Material change between periods in acct principles
- Previous material misstatement is corrected
- Other info is materially inconsistent from FS
AND CORRECT DETAILED ANSWERS| 100% CORRECT
SOLUTIONS/GRADE A+
Statements on Auditing
Nonissuers
standards (SAS)
PCAOB AS Issuers
GAGAS Govt auditing standards
SSARS Unaudited FS info for nonissuers
- How SASs should be applied in specific situations
Interpretive publications
- Not considered auditing standards
, Engagement Acceptance --> Assess Risk and Plan
Audit process Response --> Perform procedures and obtain
evidence --> Form conclusions --> Reporting
- Expressing an opinion
- Professional skepticism
- Complying with ethical requirements
Auditor responsibilities
- Professional judgement
- Obtaining sufficient, appropriate evidence
- Complying with GAAS
Auditor must:
- Plan the work, supervise assistants
To obtain reasonable
- Appropriate materiality
assurance:
- Identify, assess risks of material misstatement
- Obtain sufficient appropriate audit evidence
- To report on FS
FS Audit - Objectives - To obtain reasonable assurance about whether FS
are free from material misstatement
Unmodified opinion Nonissuers
Unqualified opinion Issuers
Title
Addressee
Intro
Audit report: Nonissuer Management's responsibility: MR DIM
Auditor's responsibility: REPPORTS CRAME
Auditor's opinion
Other reporting responsibilities
Title
Addressee
Audit report: Issuer Intro: RR
SCOPE: AA PP MM EE AA MM
Opinion
,Form AP Filed by issuer with the PCAOB
Accountant associated with
Disclaim an opinion
unaudited FS
Disclaimer of opinion: Issuer Scope paragraph is omitted
Going concern Emphasis of matter paragraph
Justified change in accounting
Emphasis of matter paragraph
principle
Subsequent facts leading to Emphasis of matter paragraph OR Other matter
change in opinion paragraph
Use of special purpose
Emphasis of matter paragraph
framework
Restricted use of auditor's
Other matter paragraph
report
, Predecessor's report is not
Other matter paragraph
reissued
Current statements with
Other matter paragraph
unaudited prior statements
Material inconsistency that
Other matter paragraph
management refuses to revise
- Other matter paragraph OR
Supplementary info- Auditor
- Separate report
Use restricted due to
Other matter paragraph
Contractual/regulatory basis
Report on compliance included Other matter paragraph
- FS are prepared in accordance with a special
Explanatory paragraph before
purpose framework
opinion when
- Prior year audit opinion is updated
- FS are prepared in accordance with a special
purpose framework
- Prior year audit opinion is updated
Explanatory paragraph:
- Substantial doubt about going concern
required
- Material change between periods in acct principles
- Previous material misstatement is corrected
- Other info is materially inconsistent from FS
