AUD CPA EXAM QUESTIONS AND ANSWERS
Given the standard, what is the body and description?
SAS - Answers- AICPA
nonissuers (private)
Given the standard, what is the body and description?
PCAOB AS - Answers- PCAOB
issuers (public)
Given the standard, what is the body and description?
GAGAS - Answers- GAO
government
Given the standard, what is the body and description?
SSAE - Answers- AICPA
attestation, not historical financial stmts
Given the standard, what is the body and description?
SSARS - Answers- AICPA
unaudited of nonissuers
objective of f/s audit - Answers- obtain reasonable assurance the f/s is free of material
mistmt whether due to error or fraud
objective of the audit of IC over financial reporting - Answers- opinion on effectiveness
of IC
plan and perform audit to obtain approp. evidence to obtain reas. assurance
GAAS vs GAAP - Answers- GAAS: guidelines how to perform audit
GAAP: if transactions reported fairly
unmodified vs unqualified - Answers- unmodified: private
unqualified: public
4 required sections of audit report (unmodified, nonissuer) - Answers- OBRA
-auditor's opinion
-basis for opinion
-responsibilities of management for the f/s
-auditor's responsibilities for the audit of the f/s
Key audit matter vs. critical audit matter - Answers- after the basis of opinion
- KAM = nonissuer
, - CAM = issuer
Where in the audit report would you say the audit is in accordance with two sets of
standards? - Answers- Basis of Opinion paragraph
Where to site GAAS in the audit report? - Answers- Basis of Opinion and Auditor's
Responsibilities paragraph
Where to site GAAP in the audit report? (nonissuer) - Answers- Opinion paragraph and
managements responsibility paragraph
KAM - Answers- -optional
-not a separate opinion
-if it changes your opinion then not a KAM
-cant communicate a KAM if adverse or disclaimer
-document required
Where to site PCAOB AS in the audit report? - Answers- Basis of Opinion section
Where to site GAAP in the audit report? (issuer) - Answers- opinion on the f/s
When to file form AP? - Answers- by 35th day after audit report filed with SEC or 10
days if in a registration statement
Where is the framework discussed (issuer and nonissuer) in the audit report? -
Answers- Issue: opinion
Nonissuer: opinion and resp. of mgt for f/s
Where is the auditing standards discussed (issuer and nonissuer) in the audit report? -
Answers- Issuer: basis for opinion
Nonissuer: basis for opinion and auditor's resp. for audit of f/s
wording for qualified opinion due to audit issues (ex: scope limit) for a nonissuer -
Answers- in the auditors opinion, except for the possible effects of the matter described
in the basis for qualified opinion... fair
wording for qualified opinion due to audit issues (ex: scope limit) for an issuer -
Answers- in our opinion, except for the effects of the adjustments if any, as described
below... fair.
When is use required for emphasis of matter paragraph? (nonissuer) - Answers- CAP
- Consistency (lack of): change in principle with material effect, change in reporting
entity, etc.
- Audit opinion change: sub. discovered facts
- Purpose: f/s prep. in accordance with special purpose framework
Given the standard, what is the body and description?
SAS - Answers- AICPA
nonissuers (private)
Given the standard, what is the body and description?
PCAOB AS - Answers- PCAOB
issuers (public)
Given the standard, what is the body and description?
GAGAS - Answers- GAO
government
Given the standard, what is the body and description?
SSAE - Answers- AICPA
attestation, not historical financial stmts
Given the standard, what is the body and description?
SSARS - Answers- AICPA
unaudited of nonissuers
objective of f/s audit - Answers- obtain reasonable assurance the f/s is free of material
mistmt whether due to error or fraud
objective of the audit of IC over financial reporting - Answers- opinion on effectiveness
of IC
plan and perform audit to obtain approp. evidence to obtain reas. assurance
GAAS vs GAAP - Answers- GAAS: guidelines how to perform audit
GAAP: if transactions reported fairly
unmodified vs unqualified - Answers- unmodified: private
unqualified: public
4 required sections of audit report (unmodified, nonissuer) - Answers- OBRA
-auditor's opinion
-basis for opinion
-responsibilities of management for the f/s
-auditor's responsibilities for the audit of the f/s
Key audit matter vs. critical audit matter - Answers- after the basis of opinion
- KAM = nonissuer
, - CAM = issuer
Where in the audit report would you say the audit is in accordance with two sets of
standards? - Answers- Basis of Opinion paragraph
Where to site GAAS in the audit report? - Answers- Basis of Opinion and Auditor's
Responsibilities paragraph
Where to site GAAP in the audit report? (nonissuer) - Answers- Opinion paragraph and
managements responsibility paragraph
KAM - Answers- -optional
-not a separate opinion
-if it changes your opinion then not a KAM
-cant communicate a KAM if adverse or disclaimer
-document required
Where to site PCAOB AS in the audit report? - Answers- Basis of Opinion section
Where to site GAAP in the audit report? (issuer) - Answers- opinion on the f/s
When to file form AP? - Answers- by 35th day after audit report filed with SEC or 10
days if in a registration statement
Where is the framework discussed (issuer and nonissuer) in the audit report? -
Answers- Issue: opinion
Nonissuer: opinion and resp. of mgt for f/s
Where is the auditing standards discussed (issuer and nonissuer) in the audit report? -
Answers- Issuer: basis for opinion
Nonissuer: basis for opinion and auditor's resp. for audit of f/s
wording for qualified opinion due to audit issues (ex: scope limit) for a nonissuer -
Answers- in the auditors opinion, except for the possible effects of the matter described
in the basis for qualified opinion... fair
wording for qualified opinion due to audit issues (ex: scope limit) for an issuer -
Answers- in our opinion, except for the effects of the adjustments if any, as described
below... fair.
When is use required for emphasis of matter paragraph? (nonissuer) - Answers- CAP
- Consistency (lack of): change in principle with material effect, change in reporting
entity, etc.
- Audit opinion change: sub. discovered facts
- Purpose: f/s prep. in accordance with special purpose framework
