ACCT 3222-3, WILEY, LSU, EXAM 1 NEWEST 2024
ACTUAL EXAM<\/p>\n\n\n\n
Audit standards require a __<\/em><\/strong> be used for all audits – ANSWER\u0002Audit standards require a standard format of the audit report be used for Obtain audit evidence and Procedures on auditor’s judgment, considered PCAOB Auditing Standard 2201 states_____ – ANSWER- PCAOB
all audits
Standard Unmodified Report – ANSWER- Used when auditors have
determined the financial statements are presented fairly in accordance
with the applicable financial reporting framework
Also called standard, unmodified\/unqualified, or “clean” report
Sections of an unmodified audit report of a private company –
ANSWER- 1. Independent Auditor’s Report<\/p>\n\n\n\n\n
performed)<\/li>\n\n\n\n
fair presentation of the F\/S; design, implementation, and maintenance of
IC; F\/S free from material misstatement whether due to fraud or error)<\/li>\n\n\n\n
(ASB), reasonable assurance F\/S free from material misstatement,<\/li>\n<\/ol>\n\n\n\n
IC relevant to design audit procedures, no expressed opinion on IC,
evidence obtained sufficient and appropriate to provide opinion)<\/p>\n\n\n\n\n
accordance with accounting principles GAAP)<\/li>\n\n\n\n
What does second paragraph of Auditor’s Responsibilities represent? –
ANSWER- How an audit is performed
PCAOB standards use the term __<\/strong> report – ANSWER- Unqualified
report. Equivalent to unmodified used in private companies and
sometimes used interchangeably as unmodified used to be used for
private companies too.
Sections of Unqualified audit report of public company – ANSWER- 1.
Report of Independent Registered Public Accounting Firm (registered w\/
PCAOB)<\/li>\n\n\n\n
stmt stays the same as private company)<\/li>\n\n\n\n
responsibility to express an opinion and be independent<\/li>\n\n\n\n\n
What is unique to the public company audit report? – ANSWER- 1. Title<\/li>\n<\/ol>\n\n\n\n\n
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required to have an audit of ICFR and auditors issue a separate opinion
for that audit<\/li>\n\n\n\n
that registered with PCAOB and independence requirements of the SEC
and other federal securities laws<\/li>\n\n\n\n
were followed<\/li>\n\n\n\n
as the company’s auditor
Qualified or Adverse opinion – ANSWER- Material departures and
client refuses to make corrections
Qualified or Disclaimer of Opinion – ANSWER- Material limitation
known as “Scope Limitation” on auditor’s ability to gather sufficient
appropriate evidence
Disclaimer of Opinion – ANSWER- Auditor is not independent<\/li>\n<\/ol>\n\n\n\n
Auditing Standard 2201 An Audit of Internal Control Over Financial
Reporting That Is Integrated with An Audit of Financial Statements
states that auditors must conduct an integrated audit for public
companies
AS 2201 requires – ANSWER- a standard format of the audit report be
used for all audits of effectiveness of ICFR
Components of the unqualified report on ICFR – ANSWER- 1. Title –
independent is also in the title of this report and registered with PCAOB<\/p>\n\n\n\n\n
references the COSO IC – Integrated Framework as criteria. Second
sentence states auditor’s opinion<\/li>\n\n\n\n
and auditors. References registration with PCAOB and independence
requirements of SEC and other fed. security laws<\/li>\n\n\n\n
only required to obtain reasonable assurance and did so as basis for
opinion<\/li>\n\n\n\n
directly from AS 2201. Final sentence not to use CY opinion to assume
future IC will be effective and circumstances may change<\/li>\n\n\n\n