CPA AUD AUDITING AND ATTESTATION
EXAMINATION ASSESSMENT SCRIPT
QUESTIONS SOLUTIONS AUDIT
STANDARDS AND REPORTING REVIEW
2026
◉ Given the standard, what is the body and description?
PCAOB AS
Answer: PCAOB
issuers (public)
◉ Given the standard, what is the body and description?
GAGAS
Answer: GAO
government
◉ Given the standard, what is the body and description?
SSAE
Answer: AICPA
,attestation, not historical financial stmts
◉ Given the standard, what is the body and description?
SSARS
Answer: AICPA
unaudited of nonissuers
◉ objective of f/s audit
Answer: 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
Answer: opinion on effectiveness of IC
plan and perform audit to obtain approp. evidence to obtain reas.
assurance
◉ GAAS vs GAAP
Answer: GAAS: guidelines how to perform audit
GAAP: if transactions reported fairly
,◉ unmodified vs unqualified
Answer: unmodified: private
unqualified: public
◉ 4 required sections of audit report (unmodified, nonissuer)
Answer: 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
Answer: 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?
Answer: Basis of Opinion paragraph
◉ Where to site GAAS in the audit report?
Answer: Basis of Opinion and Auditor's Responsibilities paragraph
, ◉ Where to site GAAP in the audit report? (nonissuer)
Answer: Opinion paragraph and managements responsibility
paragraph
◉ KAM
Answer: -optional
-not a separate opinion
-if it changes your opinion then not a KAM
-cant communicate a KAM if adverse or disclaimer
-document required
◉ 3 required sections of audit report (unmodified, issuer)
Answer: OBA
-Opinion section
-Basis of opinion section
-Critical audit matters
◉ CAM
Answer: -generally after O&B
-doesn't alter opinion
-only info publically aware
EXAMINATION ASSESSMENT SCRIPT
QUESTIONS SOLUTIONS AUDIT
STANDARDS AND REPORTING REVIEW
2026
◉ Given the standard, what is the body and description?
PCAOB AS
Answer: PCAOB
issuers (public)
◉ Given the standard, what is the body and description?
GAGAS
Answer: GAO
government
◉ Given the standard, what is the body and description?
SSAE
Answer: AICPA
,attestation, not historical financial stmts
◉ Given the standard, what is the body and description?
SSARS
Answer: AICPA
unaudited of nonissuers
◉ objective of f/s audit
Answer: 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
Answer: opinion on effectiveness of IC
plan and perform audit to obtain approp. evidence to obtain reas.
assurance
◉ GAAS vs GAAP
Answer: GAAS: guidelines how to perform audit
GAAP: if transactions reported fairly
,◉ unmodified vs unqualified
Answer: unmodified: private
unqualified: public
◉ 4 required sections of audit report (unmodified, nonissuer)
Answer: 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
Answer: 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?
Answer: Basis of Opinion paragraph
◉ Where to site GAAS in the audit report?
Answer: Basis of Opinion and Auditor's Responsibilities paragraph
, ◉ Where to site GAAP in the audit report? (nonissuer)
Answer: Opinion paragraph and managements responsibility
paragraph
◉ KAM
Answer: -optional
-not a separate opinion
-if it changes your opinion then not a KAM
-cant communicate a KAM if adverse or disclaimer
-document required
◉ 3 required sections of audit report (unmodified, issuer)
Answer: OBA
-Opinion section
-Basis of opinion section
-Critical audit matters
◉ CAM
Answer: -generally after O&B
-doesn't alter opinion
-only info publically aware
