Statements on Auditing standards (SAS) - answerNonissuers PCAOB AS - answerIssuers GAGAS - answerGovt auditing standards SSARS - answerUnaudited FS info for nonissuers Interpretive publications - answer- How SASs should be applied in specific situations - Not considered auditing standards Audit process - answerEngagement Acceptance --> Assess Risk and Plan Response --> Perform procedures and obtain evidence --> Form conclusions --> Reporting Auditor responsibilities - answer- Expressing an opinion - Professional skepticism - Complying with ethical requirements - Professional judgement - Obtaining sufficient, appropriate evidence - Complying with GAAS To obtain reasonable assurance: - answerAuditor must: - Plan the work, supervise assistants - Appropriate materiality - Identify, assess risks of material misstatement - Obtain sufficient appropriate audit evidence FS Audit - Objectives - answer- To report on FS - To obtain reasonable assurance about whether FS are free from material misstatement Unmodified opinion - answerNonissuers Unqualified opinion - answerIssuers Audit report: Nonissuer - answerTitle Addressee Intro Management's responsibility: MR DIM Auditor's responsibility: REPPORTS CRAME Auditor's opinion Other reporting responsibilities Audit report: Issuer - answerTitle Addressee Intro: RR SCOPE: AA PP MM EE AA MM Opinion Form AP - answerFiled by issuer with the PCAOB Accountant associated with unaudited FS - answerDisclaim an opinion Disclaimer of opinion: Issuer - answerScope paragraph is omitted Going concern - answerEmphasis of matter paragraph Justified change in accounting principle - answerEmphasis of matter paragraph Subsequent facts leading to change in opinion - answerEmphasis of matter paragraph OR Other matter paragraph Use of special purpose framework - answerEmphasis of matter paragraph Restricted use of auditor's report - answerOther matter paragraph Predecessor's report is not reissued - answerOther matter paragraph Current statements with unaudited prior statements - answerOther matter paragraph Material inconsistency that management refuses to revise - answerOther matter paragraph Supplementary info- Auditor - answer- Other matter paragraph OR - Separate report Use restricted due to Contractual/regulatory basis - answerOther matter paragraph Report on compliance included - answerOther matter paragraph Explanatory paragraph before opinion when - answer- FS are prepared in accordance with a special purpose framework - Prior year audit opinion is updated Explanatory paragraph: required - answer- FS are prepared in accordance with a special purpose framework - Prior year audit opinion is updated - Substantial doubt about going concern - Material change between periods in acct principles - Previous material misstatement is corrected - Other info is materially inconsistent from FS - Selected quarterly data required by SEC is omitted - RSI has been omitted Change in estimate inseparable from principle - answerEmphasis of matter/explanatory paragraph Updating prior opinion - answerD ate of previous report O pinion previously issued R eason for prior opinion C hanges that have occurred S tatement that the opinion... is different Predecessor report issued: Predecessor auditor should: - answer- Read statements for the current period - Compare previously audited with current period statements - Obtain letter of rep from successor auditor - Inquire, letter of rep from management Predecessor report not issued: New CPA should - answerOther matter paragraph (nonissuer) / introductory paragraph (issuer): - That prior period was audited by predecessor - Type of opinion expressed - Nature of any paragraphs - Date of predecessor's report Reference to component auditor only if - answer- Component auditor has performed an audit in accordance with the relevant requirements of GAAS/PCAOB - Component auditor's report is not restricted use When auditing a single statement or element: - answerAuditor should obtain an understanding of: - Purpose - Intended users - Steps taken by mgt to determine that the applicable framework is acceptable Adverse/Disclaimer on FS: Can only only express unmodified on single element when: - answerOpinion on the specific element is published separately - Specific element doesn't constitute a major portion of the FS, not based on SE/NI Subsequent events- period - answerIssuers: through the date FS are issued Nonissuers: through the date FS are available to be issued Auditor's responsibility- subsequent events - answerP ost balance sheet transactions R ep letter I nquiry M inutes E xamine latest available interim statements Subsequent events: client refusal - answerSteps to take D isassociate Alert agencies R elying parties to be notified To issue an opinion on supplementary info - answerFollowing conditions: 1. Info was derived from/relates directly to FS info 2. Same period as FS 3. FS were audited and auditor issued a report 4. Neither adverse nor disclaimer issued 5. Supplementary info will accompany FS Supplementary info: Audit procedures - answer- Inquire of mgt - Determine whether form, content of info complies with applicable criteria - Understand methods used to prepare info - Compare, reconcile to audited FS - Inquire regarding significant assumptions - Evaluate appropriateness, completeness of info - Written reps from management Supplementary info: PCAOB additional - answer- Is supplementary info fairly stated