conclusions for reports

Which opinion is issued when financial statements are fairly presented in all material respects

Unmodified opinion

Which opinion is issued for a material GAAP departure that is not pervasive

Qualified opinion

Which opinion is issued for a material and pervasive GAAP departure

Adverse opinion

Which opinion is issued when scope limitation is material but not pervasive

Qualified opinion

Which opinion is issued when scope limitation is material and pervasive

Disclaimer of opinion

What phrase best describes a qualified opinion

Except for the effects of the matter described

What phrase best describes an adverse opinion

Financial statements are not presented fairly

What phrase best describes a disclaimer of opinion

Auditor does not express an opinion

Pervasive effects means what

Effects are widespread or fundamental to financial statements as a whole

Client uses incorrect accounting principle for one material account only what opinion

Qualified opinion

Client uses incorrect accounting principle affecting many accounts what opinion

Adverse opinion

Auditor unable to observe inventory but issue isolated what opinion

Qualified opinion

Auditor unable to obtain sufficient evidence in many areas what opinion

Disclaimer of opinion

Scope limitation imposed by client before acceptance likely response

Decline engagement or withdraw

What section explains auditor responsibilities and standards used

Basis for opinion section

What section contains auditor conclusion

Opinion section

Under clarified reporting which section appears first

Opinion section

Unmodified report states audit conducted under what

GAAS or PCAOB standards as applicable

When is emphasis of matter paragraph used

To highlight properly disclosed matter fundamental to user understanding

Does emphasis of matter change the opinion

No

When is other matter paragraph used

To discuss matter outside the financial statements relevant to user understanding

Change in accounting principle properly disclosed may require what

Emphasis of matter paragraph

Change in estimate usually requires what reporting change

No special consistency paragraph normally

Going concern substantial doubt for nonissuer requires what

Separate section after opinion

Going concern issue automatically changes opinion to modified what

No if adequately disclosed

If going concern disclosure is inadequate what opinion may result

Qualified or adverse depending on pervasiveness

What period is used for going concern evaluation

One year after financial statement issuance or available to be issued date under framework guidance

Management representation letter is dated when

Same date as auditor report

Who signs management representation letter

CEO and CFO or equivalent officers

Refusal to provide representation letter usually leads to what

Disclaimer or withdrawal

Subsequent event Type 1 means what

Condition existed at balance sheet date requiring adjustment

Subsequent event Type 2 means what

Condition arose after balance sheet date requiring possible disclosure only

Auditor responsibility for subsequent events extends through what

Report date

What is dual dating report

Original report date except for specific subsequent event later date

Why use dual dating

Limit responsibility to specific later event

If facts discovered after report date would have affected report what may be needed

Revised statements and new report

If client refuses revision after discovered facts what may auditor do

Notify users and prevent reliance

Comparative statements prior year audited by same auditor current year unchanged what may happen

Prior opinion may be presented with current report

If predecessor auditor does not reissue prior report successor should do what

Reference predecessor auditor in other matter paragraph

If predecessor auditor reissues report who is responsible for update

Predecessor auditor

Principal auditor decides to divide responsibility with component auditor what happens

Reference component auditor in report

Principal auditor assumes responsibility for component auditor what happens

No reference made

Reference to auditor specialist in unmodified opinion

Generally not made

Cash flow statement omitted under GAAP likely result

Qualified or adverse opinion

Inadequate disclosure of related party transactions likely result

Qualified or adverse opinion

Material uncertainty adequately disclosed users need attention what paragraph

Emphasis of matter

Which opinion is never used for scope limitation caused by inability to obtain evidence due to pervasive issue

Adverse opinion

Review engagement provides what assurance

Limited assurance

Compilation engagement provides what assurance

None

Agreed upon procedures provides what assurance

None users evaluate findings themselves

Review procedures primarily consist of what

Inquiry and analytical procedures

If accountant lacks independence in compilation what is required

Disclose lack of independence in compilation report

If accountant becomes aware of material misstatement in review what should accountant do

Perform additional procedures or modify report

Examination attestation engagement provides what level of assurance

Reasonable assurance

SOC 1 report addresses what

Controls relevant to user entity financial reporting

SOC 2 report addresses what

Security availability processing integrity confidentiality and privacy

Type 1 service auditor report covers what

Design of controls at a point in time

Type 2 service auditor report covers what

Design and operating effectiveness over a period of time

Compliance audit may include report on what besides compliance opinion

Internal control over compliance

Material weakness in compliance internal control should be what

Reported

If financial statements depart from GAAP but effect is immaterial what opinion

Unmodified opinion

If auditor added emphasis paragraph where is it usually placed

After opinion and basis sections

If one balance materially misstated but users can still rely on remainder what opinion

Qualified opinion

If misstatements undermine reliability of entire statements what opinion

Adverse opinion

If evidence unavailable but possible effects limited to one area what opinion

Qualified opinion

If evidence unavailable and possible effects could be widespread what opinion

Disclaimer of opinion

If management restricts confirmation of receivables and balances material but isolated what opinion

Qualified opinion

If management restricts confirmations and receivables dominate statements what opinion

Disclaimer of opinion

What is the main decision framework for opinions

Materiality and pervasiveness