AUE2601 COMPREHENSIVE EXAM PREP
QUESTIONS AND SOLUTIONS VERIFIED
STUDY RESOURCE
●● Managements Responsibility for the FS
Answer: Management is responsible for the preparation and fair
presentation of these FS in accordance with the generally accepted in the
USA; this includes the design, implementation, and maintenance of
internal controls relevant to the preparation and fair presentation of the
FS that are free from misstatement, whether due to fraud or error.
●● Auditors Responsibility
Answer: Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
,purpose of expressing an opinion on the effectiveness of the entity's
internal control.2 Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
●● Opinion
Answer: In our opinion, the FS referred to above present fairly, in all
material respects, the financial position of the company as of December
31. and the results of its operations and its cash flows for the year ended
in accordance with accounting principles generally accepted in the USA.
●● AU-C 200 (overall objective of the auditor)
Answer: The overall objectives of the auditor, in conducting an audit of
financial statements, are to obtain reasonable assurance about whether
the FS as a whole are free from misstatement, whether due to fraud or
error, thereby enabling the auditor to express an opinion on whether the
FS, are presented fairly, in all material respects.
●● Objectivity and Independence
Answer: A member should maintain objectivity and be free of conflict of
interest in discharging professional responsibilities. A member in public
, practice should be independent in fact and appearance when providing
audit or other attestation services.
●● AU-C 315
Answer: The objective of the auditor is to
●● AU-C 700
Answer: The objectives of the auditor are to form an opinion on the FS
based on the audit evidence obtained, including evidence obtained about
comparative FS or comparative financial information and express clearly
that opinion on the financial statements through a written report that also
describes the basis for that opinion.
●● Comparative FS
Answer: A complete set of financial statements for one or more prior
periods included for comparison with the financial statements of the
current period.
●● Unmodified opinion
Answer: The opinion expressed by the auditor when the auditor
concludes that the FS are presented fairly, in all material respects, in
accordance with the applicable financial reporting framework.
●● When should the auditor use section 705
QUESTIONS AND SOLUTIONS VERIFIED
STUDY RESOURCE
●● Managements Responsibility for the FS
Answer: Management is responsible for the preparation and fair
presentation of these FS in accordance with the generally accepted in the
USA; this includes the design, implementation, and maintenance of
internal controls relevant to the preparation and fair presentation of the
FS that are free from misstatement, whether due to fraud or error.
●● Auditors Responsibility
Answer: Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
,purpose of expressing an opinion on the effectiveness of the entity's
internal control.2 Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
●● Opinion
Answer: In our opinion, the FS referred to above present fairly, in all
material respects, the financial position of the company as of December
31. and the results of its operations and its cash flows for the year ended
in accordance with accounting principles generally accepted in the USA.
●● AU-C 200 (overall objective of the auditor)
Answer: The overall objectives of the auditor, in conducting an audit of
financial statements, are to obtain reasonable assurance about whether
the FS as a whole are free from misstatement, whether due to fraud or
error, thereby enabling the auditor to express an opinion on whether the
FS, are presented fairly, in all material respects.
●● Objectivity and Independence
Answer: A member should maintain objectivity and be free of conflict of
interest in discharging professional responsibilities. A member in public
, practice should be independent in fact and appearance when providing
audit or other attestation services.
●● AU-C 315
Answer: The objective of the auditor is to
●● AU-C 700
Answer: The objectives of the auditor are to form an opinion on the FS
based on the audit evidence obtained, including evidence obtained about
comparative FS or comparative financial information and express clearly
that opinion on the financial statements through a written report that also
describes the basis for that opinion.
●● Comparative FS
Answer: A complete set of financial statements for one or more prior
periods included for comparison with the financial statements of the
current period.
●● Unmodified opinion
Answer: The opinion expressed by the auditor when the auditor
concludes that the FS are presented fairly, in all material respects, in
accordance with the applicable financial reporting framework.
●● When should the auditor use section 705
