Hello I would like to discuss how to assign an audit opinion given various circumstances. Thank you.
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Hello I would like to discuss how to assign an audit opinion given various circumstances. Thank you.
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- Please explain the answers as detailed as possible for why this audit opinion was given.Help me understand the distinction between an external audit and a Review Engagement.Refer to Exhibit 2.5 and answer the following questions. a. (Sections 101, 104, and 105) How does the establishment and operation of the PCAOB help to ensure quality external audits? How will audit firm inspections and investigations by the PCAOB help ensure high audit quality? b. (Sections 201-203) How do Sections 201-203 address audit ()r independence concerns? c. (Section 206) What is a cooling-off period, and how does it address auditor independence concerns? d. (Section 301) How do the audit committee requirements help ensure effective corporate governance? e. (Sections 302 and 906) How do the officer certification requirements help to address the risk of fraud in publicly traded organizations? What is the likelihood that a CFO who is committing fraudulent financial reporting would sign the certification falsely, and what are your reactions to that possibility? f. (Section 401) How does this section relate to the Enron fraud? g. (Section 404) How do the management assessment and audit or attestation of internal controls contained in this section help to address the risk of fraud in publicly traded organizations? h. (Section 407) Why is it important that at least one member of the audit committee be a financial expert? What are the financial reporting implications if the audit committee does not have any individuals serving on it who possess financial expertise? i. (Section 802) How does this section relate to the Enron fraud?
- Give one example each of when an auditor might render an unmodified opinion and include an emphasis-of-matter paragraph and an other-matter paragraph. What is the value of such paragraphs in the audit report?Discuss the importance and extent to which analytical review can be relied on in supporting an audit opinion.please answer question 2 briefly with audit examples and terms.
- Assume your firm has decided to move forward. Referring to your evaluation of internal and external factors. explain why it would be appropriate for the external audit team to accept the client audit request. using examples to support your responseUsing creativity. How will you explain the different types of audit opinion (e.g., Unqualified, Qualified, Adverse, and Disclaimer) to a layman?Audit situations 1 through 10 present various independent factual situations an auditor might encounter in conducting an audit. List A represents the types of opinions the auditor ordinarily would issue, and List B represents the report modifications (if any) that would be necessary. For each situation, select one response from List A and one from List B. Select, as the best answer for each item, the action the auditor normally would take. Items from either list may be selected once, more than once, or not at all. Assume the following: The auditor is independent The auditor previously expressed an unqualified opinion on the prior-year financial statements unless otherwise noted Only single-year (not comparative) statements are presented for the current year (unless otherwise stated) The conditions for an unqualified opinion exist unless contradicted in the factual scenario The conditions stated in the factual scenario are material No report modifications are to be made except in…