Audit Opinions

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What is the format for a non-issuer?
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Terms in this set (31)
What is the format for a non-issuer?
Title
Addressee
Intro
MR
AR
Basis for Opinion
Opinion
*explanatory paragraph
*other matters paragraph
SAD
What is the format for an issuer?
Title
Addressee
Opinion
* additional paragraph to explain the opinion
Basis for Opinion (MR & AR)
CAM
STAD
Issuer:
What does the additional paragraph after the opinion explain?
The substantative reasons for the modification and principle effect
Issuer:
What does the basis for opinion explain?
MR and AR
Issuer & Non-Issuer
When an auditor is NOT going to take responsibility for the work of the component auditor, where in the opinion is the component auditor referenced?
Issuer:
Opinion
Additional paragraph
Basis for Opinion

Non-Issuer:
Auditor Responsability
Opinion
Issuer & Non-Issuer
When a modified opinion is given, which part of the report is modified?
Issuer:
Opinion and additional paragraph

Non-Issuer:
Opinion, Auditor Responsability
Issuer:
Does a CAM effect the audit opinion?
NO
Issuer:
Where does the explanatory paragraph go in the audit report?
After the opinion
Issuer:
Which paragraphs are GAAP and PCAOB mentioned?
GAAP: Opinion
*The opinion is based on conformity to GAAP
PCAOB: Basis for Opinion
*The AR is in the paragraph. "The audit and AR is based on PCAOB"
Isser & Non-Issuer
Where is GAAP always stated in the report of an issuer or non-issuer?
Opinion
The opinion is always based on GAAP
Issuer: If an issuer omits information that the SEC requires, what paragraph is it in the report?Explanatory If it were a GAAP omission that would be a qualified or adverse opinionWhat is the title of an issuer audit report?Report of Independent Registered Public Accounting FirmWhat is the title of a non-issuer audit report?Independent Auditor ReportIssuer: Who is the audit report addressed to?ShareholdersNon-Issuer: Who is the audit report addressed to?Whoever is required by circumstances of the engagementNon-Issuer: Which paragraphs are modified if there is a disclaimer of opinion? This is a pervasive scope limitationIntro- "We were engaged to audit" Auditors Responsibility OpinionNon-Issuer If there is a qualified opinion due to a scope limitation, what will the opinion paragraph state?"Except for the POSSIBLE EFFECTS on the FS decscribe in the above basis for qualified opinion paragraph"What does a qualified opinion usually start off with saying?"Except for"Issuer: Is there a heading for the additional paragraph that follows the opinion paragraph?NONon-Issuer: Is there a basis for opinion in an unmodified report?NO If it is unmodified there is no need for a paragraph above the opinionTrue or false Most auditors identify at least one CAM?TrueIssuer: Define a CAMMaterials matters that are complex that was or required to be communicated to governance. They required a lot of the auditors judgment. These elements are stated in the CAM paragraphIssuer: Do you have to state that no CAMS were found?Yes. You have to state what CAMS are: Materials matters that are complex that was or required to be communicated to governance. They required a lot of the auditors judgment. Then state that NO CAMS are found.Non-Issuer: When will the intro be modified?When there is a disclaimer of opinionNon-Issuer: Where is GAAP and GAAS mentioned in the opinions?GAAP: MR and Opinion GAAS: ARNon-Issuer What does the Opinion make reference to?The above paragraph for the basis of opinionNon-Issuer Qualified GAAP vs GAAS problems (scope limitations) What is the only difference in the opinion paragraph?Qualified: Except for the EFFECTS Disclaimer: Except for the POSSIBLE EFFECTS ( do not use scope limitation wording)Non-Issuer Because of the significance of the matters described in the basis for ... What type of opinion is being issued?Adverse GAAPNon-Issuer Except for the effects of the matters described in the basis for... What type of opinion is being issued?Qualified GAAPNon-Issuer Except for the possible effects of the matters described in the basis for... What type of opinion is being issued?Qualified GAASNon-Issuer Because of the significance of the matters described in the basis for.. We are not able to obtain sufficient appropriate audit evidence. What type of opinion is being issued?Disclaimer of Opinion