Exam 15: Reporting on the Audit

The auditor's responsibility, as expressly stated in the audit report, is to _______.

When a client has a going concern issue, .AU-C 570 The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern requires an _______.

A company's internal control over financial reporting is a _______ designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes.

Whether auditors choose to dual date or extend the end of fieldwork, they must request written representation from management as of the new date of the auditor's report.

A compilation engagement would be described as _______.

The responsibility for the financial statements rests_______.

If the subsidiary 's financial statements audited by the component auditor is a material amount of the group financial statements, the group engagement partner typically decides to reference the work completed by the component auditor in the audit report.

The purpose of an audit is to provide_______.

The group engagement partner typically decides to reference the work completed by the component auditor in the audit report _______.

An example of a scenario which would cause the auditors to modify the opinion on internal control would be _______.

At the conclusion of a compilation engagement, _______.

Sally Jones is a staff accountant and has been assigned to the audit of Pipeline Services, Inc. Subsequent to the completion of fieldwork Sally was assigned to draft the audit report.The content of one of the paragraphs she has drafted reads as follows: As explained in Note 2 to the financial statements, Pipeline has charged goodwill and certain other intangible assets acquired in two separate acquisitions directly to shareholders' equity.Under generally accepted accounting principles, these intangibles should have been recorded as assets and amortized to income over future periods.Had these intangibles been capitalized, total assets would have increased by $500,000 as of December 31, 2017 and net income and earnings per share would be increased by $250,000 and $2.25, respectively (assuming a 20-year amortization period). a.Based on the contents of the paragraph above, which condition requiring a departure from a standard unqualified opinion exists in the engagement? b.Assuming that the engagement partner agrees with the paragraph Sally has drafted, where in the auditor's report should the paragraph be placed? c.How would the materiality of the condition above affect the final choice of opinion?

The group engagement team _______.

The auditor should consider modifying the opinion if the management refuses to sign the updated representation letter.

Once auditors have gathered sufficient appropriate audit evidence, evaluated uncorrected misstatements, and completed the required communications with those charged with governance _______.

The auditors of BZ Manufacturing completed their fieldwork on February 15, 2022.However, they became aware of a subsequently discovered fact requiring revision on February 20, 2022.Compare and contrast the two options auditors have for dating the audit report in relation to performing audit procedures on subsequently discovered facts that become known before the report release date.

According to PCAOB AS 2201, _______.

In the audit report, the auditor states that another party is responsible for the preparation of the financial statements.This party is _______.

A scope limitation occurs when auditors are able to perform planned audit procedures to gather sufficient appropriate evidence.

AU-C 700 Forming an Opinion and Reporting on Financial Statements defines an unmodified opinion as the opinion expressed by the_______.