Audit CPA || all solved.
Management's
Responsibility
Design
Implementation
Maintenance
(MR DIM) correct answers Management's Responsibility for the Financial Statement audit report
paragraph should include:
Auditor should examine:
Analytical procedures
Debt compliance
Minutes
Inquiry of client's legal counsel
Third parties
Subsequent events review
(ADMITS) correct answers Auditor's procedures to determine going concern:
Financial difficulties
Internal matters
Negative trends
External matters
(FINE) correct answers events and conditions that may be indicative of going concern doubt:
Component correct answers an entity or business activity that prepares financial information that
is included in the group financial statements
, Component Auditor correct answers an auditor who performs work on the financial information
of a component that will be used as audit evidence for the group audit
Date of auditor's previous report
Opinion previously issued
Reason for the prior opinion
Changes that have occurred
Statement that the "opinion.. is different"
(DORCS) correct answers Format of explanatory paragraph if the auditor updates a prior year
opinion:
Type 1 recognized subsequent event correct answers subsequent event existed on or before the
balance sheet date, and an adjustment to the financial statements is usually required
Type 2 non-recognized subsequent event correct answers subsequent event existed after the
balance sheet date, and require no adjustments to the financial statements, but may require
significant additional disclosure
Post balance sheet transactions should be reviewed
Representation letter should be obtained by management
Inquiry
Minutes should be read
Examine latest interim financial statements
(PRIME) correct answers During subsequent period, the auditor should perform the following
procedures:
Staff qualifications
Transaction types and frequency
Management's
Responsibility
Design
Implementation
Maintenance
(MR DIM) correct answers Management's Responsibility for the Financial Statement audit report
paragraph should include:
Auditor should examine:
Analytical procedures
Debt compliance
Minutes
Inquiry of client's legal counsel
Third parties
Subsequent events review
(ADMITS) correct answers Auditor's procedures to determine going concern:
Financial difficulties
Internal matters
Negative trends
External matters
(FINE) correct answers events and conditions that may be indicative of going concern doubt:
Component correct answers an entity or business activity that prepares financial information that
is included in the group financial statements
, Component Auditor correct answers an auditor who performs work on the financial information
of a component that will be used as audit evidence for the group audit
Date of auditor's previous report
Opinion previously issued
Reason for the prior opinion
Changes that have occurred
Statement that the "opinion.. is different"
(DORCS) correct answers Format of explanatory paragraph if the auditor updates a prior year
opinion:
Type 1 recognized subsequent event correct answers subsequent event existed on or before the
balance sheet date, and an adjustment to the financial statements is usually required
Type 2 non-recognized subsequent event correct answers subsequent event existed after the
balance sheet date, and require no adjustments to the financial statements, but may require
significant additional disclosure
Post balance sheet transactions should be reviewed
Representation letter should be obtained by management
Inquiry
Minutes should be read
Examine latest interim financial statements
(PRIME) correct answers During subsequent period, the auditor should perform the following
procedures:
Staff qualifications
Transaction types and frequency
