Term
| 8 elements of an unqualified audit report |
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Definition
- Report title
- the addressee
- introductory paragraph
- scope paragraph
- opinion paragraph
- explanatory paragraph referring to the audit of internal control
- name of auditor
- date of report
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Term
| 4 situations that may require the auditor to modify wording or add explanatory language to an unqualified report |
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Definition
- opinion based in part on the report of another auditor
- going concern
- lack of consistency in the financial statements due to accounting changes
- emphasis of a matter
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Term
| 2 things that the principal auditor must assess of the other auditors |
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Definition
- professional reputation
- independence
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Term
| 2 kinds of changes that contribute to lack of consistency |
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Definition
- changes affecting consistency
- changes not affecting consistency
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Term
| 3 Changes affecting consistency |
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Definition
- Change in accounting principle
- Change in reporting entity
- Correction of an error in principle
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Term
| Changes not affecting consistency |
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Definition
- Change in accounting estimate
- Correction of an error that does not involve an accounting principle
- Change in classification and reclassification
- Change expected to have a material future effect
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Term
| 3 conditions under which the auditor would depart from a "clean" opinion |
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Definition
- Scope limitation
- Departure from GAAP
- Lack of independence of the auditor
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Term
| 3 types of financial statement audit reports other than unqualified |
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Definition
- Qualified (always uses the words "except for")
- Disclaimer
- Adverse
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Term
| 3 reasons to issue a disclaimer financial statement audit report |
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Definition
- Pervasively material effect
- lack of independence of the auditor
- substantial doubt about the entity's ability to continue as a going concern
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Term
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Definition
| "other comprehensive basis of accounting" (that is, other than GAAP) |
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Term
| 4 bases for which OCBOA financial statements would be prepared |
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Definition
- Regulatory basis
- Tax basis
- Cash (or modified cash) basis
- A definite set of criteria having substantial support
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Term
| How should changes that affect comparability but not consistency be reported? |
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Definition
| Disclosed in the notes to the financial statements, but not in an explanatory paragraph in the auditor's report |
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