AUD CPA- Exam Questions and Already
Solved Solutions Updated.
order of Unmodified audit report - Answer (OBRA)
-opinion
-basis for opinion
-responsibilities of management
-auditors responsibilities
SSAE (Statements on Standards for Attestation Engagements) - Answer -examination
-review
-agreed upon procedures
*must all be independent
SSARS (Statements on Standards for Accounting and Review Services) - Answer -preparation
-compilation
-review
Audit Process - Answer 1. Engagement Acceptance
2. Assess Risk and Plan Response
3. Perform procedures and obtain evidence
4. Form conclusions
5. Reporting
order of unqualified audit report - Answer (OBC)
-opinion
-basis for opinion
-critical audit matters (CAM)
for each CAM, what should be reported - Answer (IPAD) - "its critical these IPAD kids"
-identify CAM
-principal consideration
-how was cam addressed
-disclosures relevant
,how does a qualified opinion change a non-issuers report - Answer -opinion and basis for
opinion change
-title change
-"except for"
how does a qualified opinion change a issuers report - Answer -opinion and additional
paragraphs
-"except for"
how does an adverse opinion change a non-issuers report - Answer -opinion and basis for
opinion change
-title change
-NO KAM
-"because of"
how does an adverse opinion change a issuers report - Answer -opinion and additional
paragraphs
-NO CAM
-"because of"
how does a disclaimer opinion change a non-issuers report - Answer -opinion and basis for
opinion change AND auditor section
-title change
-NO KAM
-"because of"
how does a disclaimer opinion change a issuers report - Answer -opinion and additional
paragraphs AND basis changes
-title changes
-NO CAM
-"because of"
When to use Emphasis of Matter paragraph - Answer (CAP) -- "CAP's EMPHASIS your ears"
- consistency (lack of)
- audit opinion change
- purpose: special purpose framework
, When to use Other Matter paragraph - Answer (RAC) -- " put the balls on the OTHER RAC"
- restricted use
- audit opinion change
- comparative f/s
what to include when Updating (Changing) Prior Opinions - Answer (DORCS) -- "only DORCS
change their minds"
- date of previous report
- opinion previously given
- reason for prior opinion
- change
- statement "opinion is different"
comparative f/s when predecessor audit IS PRESENT - Answer reissue!!
-predecessor should:
1. read current f's
2. compare
3. get rep letters from mgt. and successor auditor
comparative f/s when predecessor audit IS NOT PRESENT - Answer report on CURRENT only
other matter or explanatory saying:
-audited by previous
-opinion given
comparative f/s when past were NOT AUDITED - Answer other matter or explanatory saying:
-service (reviewed or compiled)
-no opinion or assurance
-"less in scope than audit"
comparative f/s when past were NOT NOTHING - Answer -state this and says assume no
responsibility
-all pages marked "unaudited"
2 options for component auditors - Answer MUST be independent
1. make no reference and assume all responsibility
Solved Solutions Updated.
order of Unmodified audit report - Answer (OBRA)
-opinion
-basis for opinion
-responsibilities of management
-auditors responsibilities
SSAE (Statements on Standards for Attestation Engagements) - Answer -examination
-review
-agreed upon procedures
*must all be independent
SSARS (Statements on Standards for Accounting and Review Services) - Answer -preparation
-compilation
-review
Audit Process - Answer 1. Engagement Acceptance
2. Assess Risk and Plan Response
3. Perform procedures and obtain evidence
4. Form conclusions
5. Reporting
order of unqualified audit report - Answer (OBC)
-opinion
-basis for opinion
-critical audit matters (CAM)
for each CAM, what should be reported - Answer (IPAD) - "its critical these IPAD kids"
-identify CAM
-principal consideration
-how was cam addressed
-disclosures relevant
,how does a qualified opinion change a non-issuers report - Answer -opinion and basis for
opinion change
-title change
-"except for"
how does a qualified opinion change a issuers report - Answer -opinion and additional
paragraphs
-"except for"
how does an adverse opinion change a non-issuers report - Answer -opinion and basis for
opinion change
-title change
-NO KAM
-"because of"
how does an adverse opinion change a issuers report - Answer -opinion and additional
paragraphs
-NO CAM
-"because of"
how does a disclaimer opinion change a non-issuers report - Answer -opinion and basis for
opinion change AND auditor section
-title change
-NO KAM
-"because of"
how does a disclaimer opinion change a issuers report - Answer -opinion and additional
paragraphs AND basis changes
-title changes
-NO CAM
-"because of"
When to use Emphasis of Matter paragraph - Answer (CAP) -- "CAP's EMPHASIS your ears"
- consistency (lack of)
- audit opinion change
- purpose: special purpose framework
, When to use Other Matter paragraph - Answer (RAC) -- " put the balls on the OTHER RAC"
- restricted use
- audit opinion change
- comparative f/s
what to include when Updating (Changing) Prior Opinions - Answer (DORCS) -- "only DORCS
change their minds"
- date of previous report
- opinion previously given
- reason for prior opinion
- change
- statement "opinion is different"
comparative f/s when predecessor audit IS PRESENT - Answer reissue!!
-predecessor should:
1. read current f's
2. compare
3. get rep letters from mgt. and successor auditor
comparative f/s when predecessor audit IS NOT PRESENT - Answer report on CURRENT only
other matter or explanatory saying:
-audited by previous
-opinion given
comparative f/s when past were NOT AUDITED - Answer other matter or explanatory saying:
-service (reviewed or compiled)
-no opinion or assurance
-"less in scope than audit"
comparative f/s when past were NOT NOTHING - Answer -state this and says assume no
responsibility
-all pages marked "unaudited"
2 options for component auditors - Answer MUST be independent
1. make no reference and assume all responsibility
