This differs from attestation, where the CPA expresses a conclusion about a written assertion of another.agreed-upon procedures An engagement where the client specifies procedures and the accountant agrees to perform those procedures.
An accountant may accept an engagement to apply agreed-upon procedures to financial statement elements, where the scope of the engagement is not sufficient to express an opinion, if the users assume responsibility for sufficiency of the procedures, and use of the report is restricted to specified users.
You can also use this list to test your general knowledge of the topics covered on the AUD exam section.
All of these terms should be covered in any CPA review course text book.
Whether to issue a disclaimer of opinion rather than an "except for" opinionc. Review of the working papers is completed In the report of the principal auditor, reference to the fact that a portion of the audit was made by another auditor is:a. The financial statements are not in conformity with the FASB Statements regarding the capitalization of leases D. May express a qualified opinion due to a scope limitation B. Information about the entity's ability to continue as a going concern is not disclosed C. When a client declines to disclose essential information in the financial statements or notes, the auditor of the financial statements should: A. If audited financial statements include a balance sheet and an income statement, but do not include a statement of cash flows: A.
Whether to issue an adverse opinion rather than an "except for" opiniond. Not to be construed as a qualification, but rather as a division of responsibility between the two CPA firmsb. An improper type of reporting The auditor who wishes to indicate that the entity has significant transactions with related parties should disclose this fact in:a. The auditor has substantial doubt about the entity's ability to continue as a going concern An auditor most likely would issue a disclaimer of opinion because of: A. Must express a qualified opinion due to a scope limitation C. Management has no plans to reduce or delay future expenditures. Negative trends and recurring operating losses appear to be irreversible. Provide the information in the audit report, if practicable, and qualify the opinion because of a limitation on the scope of the audit. Provide the information in the audit report, if practicable, and qualify the opinion because of a departure from GAAP. Issue a disclaimer of opinion because the client has interfered with the auditor's function of assessing the adequacy of disclosure. Issue an unqualified opinion, but inform the reader by including the omitted information in the audit report. Such assumption of responsibility violates the profession's standards. In such circumstances, when appropriate requirements have been met, Firm A should issue a standard unqualified opinion on the financial statements. In such circumstances, when appropriate requirements have been met, Firm A should issue an unqualified opinion on the financial statements but should make appropriate reference to Firm B in the audit report. CPA firm A should normally qualify its audit report on the basis of the scope limitation involved when another CPA firm is involved. The auditors may still issue an unqualified opinion. The auditors should issue an "except for" qualification for the departure from generally accepted accounting principles. The auditors should issue an opinion "subject to" the information that would have been contained in the statement of cash flows. The auditors should refuse to issue an opinion on only the two financial statements. The audit report indicates a division of responsibility between two CPA firms. The report is qualified because the scope of the auditors' work was restricted.
Review is inquiry and analytical procedures to provide the accountant a basis for expressing limited assurance that there are no material modifications that should be made to the statements for them to be in conformity with U. generally accepted accounting.accounting estimate An approximation of a financial statement element.
Estimates are included in historical financial statements because some amounts are uncertain pending outcome of future events and relevant data about events that have occurred cannot be accumulated on a timely, cost-effective basis.advisory services are a consulting service in which the CPA develops the findings, conclusions, and recommendations presented for client decision-making.
By only utilizing the senior nurse manager in monthly CQI meetings, clinical staff, which are a very integral part of the overall process, were undermined in the improvement and organizational forward motion of the facility.Your study guide should also include similar glossaries for FAR, BEC, and REG, and FAR.If you haven’t picked out a CPA study guide yet, take a look at our reviews. Unqualified Which of the following does not ordinarily involve the addition of an explanatory paragraph to an audit report? Does not sign an engagement letter specifying the responsibilities of both the entity and the auditor D. Amount of known misstatement is documented in the management representation letter. Estimate of the total likely misstatement is less than a material amount. Amount of known misstatement is acknowledged and recorded by the client. Estimate of the total likely misstatement includes the adjusting entries already recorded by the client. Used for an unqualified opinion when an explanatory paragraph is added. Are assuming full responsibility for the work of the other auditors. An adverse opinion An audit report for a public client indicates that the audit was performed in accordance with a. Refuses to disclose in the notes to the financial statement related party transactions authorized by the board of directors C. Unqualified When issuing an unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the: A. After performing all necessary procedures the predecessor auditors reissue a prior-period report on financial statements at the request of the client without revising the original wording.