When Group Auditor do A reference to a componant auditor. The reference is not a qualification of the opinion and does not require an additional paragraph. A reference to a component auditor indicates that the group auditor does not assume responsibility for the audit of the component auditor. It also indicates the source of the audit evidence with respect to the component.
Misappropriation of assets의 위험이 있는 경우 Rapid growth or probability. High degree of liquidity: easily convertible into cash. Fraudulent financial reporting의 위험이 있는 경우
Overall responses apply to the assessed RMMs at the financial statement level. The following are examples of overall responses: (1) An emphasis on professional skepticism in evidence gathering and evaluation; (2) increased supervision; (3) assignment of staff with greater experience or expertise; (4) greater unpredictability in the choice of further audit procedures; and (5) changing the nature,..
Period-end vs. Interim dates 놀랍게도, Period-end 가 더 꼼꼼하다! 왜냐하면 Period-end에 있는 Misstatement를 잡아낼 수 있기 때문이다.
Under PCAOB auditing standards for audits of issuers, an emphasis paragraph is (1) never required, (2) not a substitute for required critical matters, and (3) is not referred to in the opinion paragraph.
Dual-dated reports relate to events that occur between the original date of the auditor’s report and the additional date of a revision of the statements for subsequently discovered facts.
■ A meeting of the three parties should be requested. 그리고 이 Meeting은 the Client가 주선한다. - Request the Client to arrange a meeting among the three parties to resolve the matter. ■ Because the prior year’s financial statements appear to require restatement, the auditor should discuss the matter with the predecessor auditor. ■ (S)he should communicate any information that the predecessor auditor may..
[AU-C 700] Present Comparatively with the Prior Period's Reissued or o-m should be included in the report ■ 정의: Either the report on the unaudited statements should be reissued, or an other-matter paragraph should be included in the auditor’s report. Reissued [AU-C 700] 비교연도(과거)의 것이 잘못됬으면 현상태에 맞게 업데이트 해야함. A continuing auditor should update the report on the individual statements of one or more ..
따로 언급(Refer to) 안하면 문제 없다는 뜻임 If it has been materially affected ■ The auditor may refer to an auditor’s external specialist only when the opinion is modified. (AU-C 620) -The reference is made because it is relevant to understanding the modification. -An auditor’s report with such a reference should state that it does not reduce the auditor’s responsibility. ■ If the auditor is able to obtain s..
Group Auditing Engagements? 예시: Pell, CPA, is the group engagement partner in the audit of the financial statements of Tech Consolidated, Inc. Smith, CPA, audits one of Tech’s subsidiaries. AU 600 When the group engagement partner assumes responsibility for the work of a component auditor, the auditor’s report on the group statements does not refer to the component auditor. However, the group en..
■The types of opinion Exceptions Types of Audit Opinion Immaterial Material Material and Pervasive Scope Limitation Unmodified Qualified Disclaimer Departure from GAAP Unmodified Qualified Adverse ■ A Substantial Doubt -Unmodified Opinion is O.K. By itself, this doubt does not require a modification of the opinion. 즉, By itself, a substantial doubt about an entity’s ability to continue as a goin..
Basis ■ 위치: A basis for modification paragraph should precede the opinion paragraph. ※ No Basis ■ If the auditor has contained Unmodified opinion in the report, ○ No basis is given for including an emphasis-of-matter paragraph. . E-o-m ■ 위치: An emphasis-of-matter paragraph is placed immediately after the opinion paragraph. ■ 정의: An emphasis-of-matter paragraph in the auditor’s report draws users..