Question 1

Discuss the new enhancements implemented by the new PCAOB reporting standards for "listed" (public)entities.

Accepted Answer

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Question 2

Discuss three circumstances that prohibit the auditor from issuing an unqualified/unmodified opinion and the types of reports that the auditor may issue for a financial statement audit because of these circumstances.

Accepted Answer

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Question 3

Identify the special purpose framework used in each of the following situations.
1. A real estate company reports to its partners on the basis used to complete the income tax return.
2. A company has its financial statements prepared on a price-level adjusted basis as required by its lender.
3. An insurance company reports in compliance with the rules of a state insurance commission.
4. A partnership reports on revenues received and expenses paid.
What modifications must be made to the non-public company standard auditor's report for these situations?

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The answer of Identify the special purpose framework used in...

Question 4

For each of the following situations, indicate what type of audit report is most appropriate.
a. The auditor lacks independence in fact, but not necessarily in appearance.
b. There is a scope limitation and it is material but the overall financial statements are still presented fairly.
c. The uncorrected misstatements are immaterial.
d. There is a departure from GAAP and it is pervasively material.

Accepted Answer

The answer of For each of the following situations, indicate...

Quiz 18: Reports on Audited Financial Statements

Discuss the new enhancements implemented by the new PCAOB reporting standards for "listed" (public)entities.

Discuss three circumstances that prohibit the auditor from issuing an unqualified/unmodified opinion and the types of reports that the auditor may issue for a financial statement audit because of these circumstances.