CPA: AUDIT EXAM 2 WITH COMPLETE
QUESTIONS AND ANSWERS
[GRADED A+]
Non-issuers audit standards - ✔✔AICPA: generally accepted auditing
standards
*Statements on Auditing Standards (SAS)
Issuers generally accepted auditing standards - ✔✔PCAOB Auditing
Standards (AS)
Guidance for audits of government organizations, programs, activities, and
entities that receive government funds - ✔✔Governmental Accountability
Office: Generally Accepted Government Auditing Standards (GAGAS)
©morren2026/2027.Year published 2026.
,Financial or performance audits of government organizations, programs,
activities, and entities that receive government funds
Guidance for attestation Engagements - ✔✔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
Guidance for unaudited FS or unaudited financial statements of nonissuers
- ✔✔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 - ✔✔1. SAS (non issuers), PCAOB AS (issuers)
2. Interpretive publications
©morren2026/2027.Year published 2026.
,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? - ✔✔1. Intro: Engaged to audit
2. Auditor responsibility paragraph: Not able to obtain
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? - ✔✔1. Opinion section: Engaged to audit
and disclaimer
©morren2026/2027.Year published 2026.
, 2. Additional paragraph after opinion
3. Basis for opinion section: Omit certain sentences
Unmodified Report: Nonissuer: Standard Format - ✔✔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
9. Signature
10. Address
11. Date
Standard Unqualified Report: Issuer - ✔✔1. Title (Must include word
registered)
2. Addressee
3. Opinion section
©morren2026/2027.Year published 2026.
QUESTIONS AND ANSWERS
[GRADED A+]
Non-issuers audit standards - ✔✔AICPA: generally accepted auditing
standards
*Statements on Auditing Standards (SAS)
Issuers generally accepted auditing standards - ✔✔PCAOB Auditing
Standards (AS)
Guidance for audits of government organizations, programs, activities, and
entities that receive government funds - ✔✔Governmental Accountability
Office: Generally Accepted Government Auditing Standards (GAGAS)
©morren2026/2027.Year published 2026.
,Financial or performance audits of government organizations, programs,
activities, and entities that receive government funds
Guidance for attestation Engagements - ✔✔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
Guidance for unaudited FS or unaudited financial statements of nonissuers
- ✔✔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 - ✔✔1. SAS (non issuers), PCAOB AS (issuers)
2. Interpretive publications
©morren2026/2027.Year published 2026.
,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? - ✔✔1. Intro: Engaged to audit
2. Auditor responsibility paragraph: Not able to obtain
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? - ✔✔1. Opinion section: Engaged to audit
and disclaimer
©morren2026/2027.Year published 2026.
, 2. Additional paragraph after opinion
3. Basis for opinion section: Omit certain sentences
Unmodified Report: Nonissuer: Standard Format - ✔✔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
9. Signature
10. Address
11. Date
Standard Unqualified Report: Issuer - ✔✔1. Title (Must include word
registered)
2. Addressee
3. Opinion section
©morren2026/2027.Year published 2026.
