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Audit 1 Module 8 - Reporting with Different Opinions and Other Auditors
Terms in this set (15)
Reaffirm or changing the original opinion
Updating Prior Opinions:
Hint: Changing Opinion DORCS your mind.
D: Date of the auditor's previous report
O: Opinion type previously issued
R: Reason for prior opinion
C: Changes that have occurred
S: Statement that opinion is different
address in emphasis-of-matter or other-matter or explanatory paragraph
Report of the Predecessor Auditor Presented "Old CPA Should"
1.Read the statements for current period
2.Compare the financial statements audited w/ current period
3.Obtain a letter of representation from the successor auditor
4.Obtain a letter of representation from management
5.If unrevised use original audit report date
6.If revised use dual date
Report of the Predecessor Auditor Not Reissued "New CPA Should"
1.FS of prior period were audited by a predecessor auditor "don't name"
2.Type of opinion expressed
3.Nature of any emphasis-of-matter, other-matter or explanatory paragraph
4.Date of predecessor auditor's report
5.Include in other-matter "nonissuer" or 5.introductory paragraph "issuer"
Prior Period Statements Reviewed or Compiled
1.Include in an other-matter paragraph "nonissuer" or explanatory paragraph "issuer"
3.Date of prior period report
4.Description of any material modifications
5.Statement that the service was less in scope than an audit
Prior Period Statements Not Audited, Reviewed, or Compiled
1.Include an other-matter "nonissuer" or explanatory "issuer" paragraph.
2.Indicate that the auditor didn't audit, review, or compile and assumes no responsibility for prior year financial statements.
Entity or business activity that prepares financial information that is included in the group financial statements.
Auditor who performs work on the financial information of a component that will be used as audit evidence for the group audit.
Group Engagement Partner
Partner or other person in the firm who is responsible for the group audit engagement and for the auditor's report on the group financial statements.
Group Engagement Team
Group engagement partner, other partners, & staff who establish the overall audit strategy, communicate w/ component auditors, perform work on consolidation process & evaluate the conclusions drawn from the audit evidence as the basis for forming an opinion on the group financial statements.
Group Financial Statements
Financial statements that include the financial information of more than one component.
Understanding the Component Auditor
3.Extent of involvement
4.Get the information needed from them
5.Operates in a regulatory environment that oversees auditors
Don't Reference Component Auditor
2.Group should do really significant things themselves.
Reference Component Auditor.
1.Component auditor has performed an audit in accordance w/ relevant requirements of GAAS or the PCAOB.
2.Component auditor's report isn't restricted use.
Reference Component Auditor.
Indicate in auditor's responsibility "nonissuer" or introductory "issuer" paragraph.
1.Audited by component auditor.
2.Magnitude of portion.
3.If used a different financial accounting framework the framework used "group engagement partner responsible for adjustments to convert".
4.If they did additional procedures to comply with GAAS.
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