CPA: Audit Latest Update 2026
(Questions and Answers-Verified
solutions)
Non-issuers audit standards - Correct Answers ✅AICPA:
generally accepted auditing standards
*Statements on Auditing Standards (SAS)
Issuers generally accepted auditing standards - Correct
Answers ✅PCAOB Auditing Standards (AS)
Guidance for audits of government organizations, programs,
activities, and entities that receive government funds -
Correct Answers ✅Governmental Accountability Office:
Generally Accepted Government Auditing Standards (GAGAS)
Financial or performance audits of government organizations,
programs, activities, and entities that receive government
funds
Guidance for attestation Engagements - Correct Answers
✅AICPA: Statements on Standards for Attestation
Engagements (SSAE)
-Examination, review, or agreed upon procedures report on a
subject matter, or an assertion about a subject matter, that is
the responsibility of another party
,CPA: Audit Latest Update 2026
(Questions and Answers-Verified
solutions)
Guidance for unaudited FS or unaudited financial statements
of nonissuers - Correct Answers ✅AICPA: Statements on
Standards for Accounting and Review Services (SSARS)
-Preparation, compilation, and reviews of historical FS:
nonissuers
-Preparation or compilation of pro forma financial information:
nonissuers
3 levels of audit guidance - Correct Answers ✅1. SAS (non
issuers), PCAOB AS (issuers)
2. Interpretive publications
3. Other auditing publications
^Most to least authoritative
Auditor's report: Nonissuer
Which paragraphs change when the scope limitation is
material and pervasive/what do they say? - Correct
Answers ✅1. Intro: Engaged to audit
2. Auditor responsibility paragraph: Not able to obtain
,CPA: Audit Latest Update 2026
(Questions and Answers-Verified
solutions)
3. Basis for disclaimer of opinion paragraph
4. Disclaimer of opinion paragraph
Auditor's report summary: Issuer
Which paragraphs change when the scope limitation is
material and pervasive/what do they say? - Correct
Answers ✅1. Opinion section: Engaged to audit and
disclaimer
2. Additional paragraph after opinion
3. Basis for opinion section: Omit certain sentences
Unmodified Report: Nonissuer: Standard Format - Correct
Answers ✅1. Title
2. Addressee
3. Intro paragraph
4. Management responsibility
5. Auditor's responsibility
6. Auditor's opinion
7. Possible emphasis of matter or other matter paragraph
8. Other reporting responsibility
, CPA: Audit Latest Update 2026
(Questions and Answers-Verified
solutions)
9. Signature
10. Address
11. Date
Standard Unqualified Report: Issuer - Correct Answers ✅1.
Title (Must include word registered)
2. Addressee
3. Opinion section
(IF QUALIFIED OR ADVERSE OPINION: REASONS STATED IN
PARAGRAPH FOLLOWING OPINION: NO HEADING).
4. Basis for opinion: AR, MR
5. Signature, tenure, location
6. Report date
Issuer
1. Opinion on FS paragraph references:
2. Basis for opinion paragraph references: - Correct
Answers ✅1. GAAP
2. PCAOB auditing standards
(Questions and Answers-Verified
solutions)
Non-issuers audit standards - Correct Answers ✅AICPA:
generally accepted auditing standards
*Statements on Auditing Standards (SAS)
Issuers generally accepted auditing standards - Correct
Answers ✅PCAOB Auditing Standards (AS)
Guidance for audits of government organizations, programs,
activities, and entities that receive government funds -
Correct Answers ✅Governmental Accountability Office:
Generally Accepted Government Auditing Standards (GAGAS)
Financial or performance audits of government organizations,
programs, activities, and entities that receive government
funds
Guidance for attestation Engagements - Correct Answers
✅AICPA: Statements on Standards for Attestation
Engagements (SSAE)
-Examination, review, or agreed upon procedures report on a
subject matter, or an assertion about a subject matter, that is
the responsibility of another party
,CPA: Audit Latest Update 2026
(Questions and Answers-Verified
solutions)
Guidance for unaudited FS or unaudited financial statements
of nonissuers - Correct Answers ✅AICPA: Statements on
Standards for Accounting and Review Services (SSARS)
-Preparation, compilation, and reviews of historical FS:
nonissuers
-Preparation or compilation of pro forma financial information:
nonissuers
3 levels of audit guidance - Correct Answers ✅1. SAS (non
issuers), PCAOB AS (issuers)
2. Interpretive publications
3. Other auditing publications
^Most to least authoritative
Auditor's report: Nonissuer
Which paragraphs change when the scope limitation is
material and pervasive/what do they say? - Correct
Answers ✅1. Intro: Engaged to audit
2. Auditor responsibility paragraph: Not able to obtain
,CPA: Audit Latest Update 2026
(Questions and Answers-Verified
solutions)
3. Basis for disclaimer of opinion paragraph
4. Disclaimer of opinion paragraph
Auditor's report summary: Issuer
Which paragraphs change when the scope limitation is
material and pervasive/what do they say? - Correct
Answers ✅1. Opinion section: Engaged to audit and
disclaimer
2. Additional paragraph after opinion
3. Basis for opinion section: Omit certain sentences
Unmodified Report: Nonissuer: Standard Format - Correct
Answers ✅1. Title
2. Addressee
3. Intro paragraph
4. Management responsibility
5. Auditor's responsibility
6. Auditor's opinion
7. Possible emphasis of matter or other matter paragraph
8. Other reporting responsibility
, CPA: Audit Latest Update 2026
(Questions and Answers-Verified
solutions)
9. Signature
10. Address
11. Date
Standard Unqualified Report: Issuer - Correct Answers ✅1.
Title (Must include word registered)
2. Addressee
3. Opinion section
(IF QUALIFIED OR ADVERSE OPINION: REASONS STATED IN
PARAGRAPH FOLLOWING OPINION: NO HEADING).
4. Basis for opinion: AR, MR
5. Signature, tenure, location
6. Report date
Issuer
1. Opinion on FS paragraph references:
2. Basis for opinion paragraph references: - Correct
Answers ✅1. GAAP
2. PCAOB auditing standards
