There are four conditions that must be met before an auditor can issue a standard unmodified opinion audit report for the audit of a private company. Please discuss each of these four conditions.
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There are four conditions that must be met before an auditor can issue a standard unmodified opinion audit report for the audit of a private company. Please discuss each of these four conditions.
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- What is the purpose of an external audit by an independent CPA firm? How does an auditor go about conducting an audit? How does a qualified opinion by an auditor differ from an unqualified opinion or an adverse opinion? Paragraph under 100 words pleaseWhich of the following statements about the auditor's responsibilities in public company audits is true as covered by the PCAOB? A. The auditor issues an opinion on the financial statements and management issues the opinion on internal control over financial reporting. B. The auditor issues an opinion on the financial statements only if internal control over financial reporting is found to be effective. C. The auditor issues an opinion on the financial statements; if those are found to be fairly stated, the auditor proceeds to issue an opinion on internal control over financial reporting. D. The auditor issues opinions on the financial statements and internal control over financial reporting.The auditors’ report provides the analyst with an independent and professional opinion about the fairness ofthe representations in the financial statements. What are the four main types of opinion an auditor of a publiccompany might issue? Describe each
- What are some of the similarities and differences between evidence in a legal case and evidence obtained or generated for an audit of the financial statements? What are the four major evidence decisions that must be made for every audit. What is the relationship between the audit procedure and audit evidence used in the auditor's work papers?The auditor’s report provides the analyst with an independent and professional opinion about the fairness of the representations in the financial statements. What are the four main types of opinion an auditor of a publiccompany might issue? Describe each.North, CPA, is planning an independent audit of the financial statements of General Company. In determining the nature, timing, and extent of the audit procedures, North is considering General’s internal audit function, which is staffed by Tyler.Required:a. In what ways can the internal auditor’s work be relevant to North, the independent auditor?b. What factors should North consider, and what inquiries should North make in deciding whether to use Tyler’s internal audit work?
- Discuss Briefly the fundamental principles of Duty of confidentiality An Auditor is required to express an opinion on the truth and fairness of the Financial statements which represents the objective of an audit. The Auditor in carrying out his duty seeks to obtain acceptable evidence to draw the necessary conclusions for a valid opinion to be expressed on the financial statements. Required: Describe audit evidence and justify why the auditor would require such evidence Identify FOUR sources of audit evidence and illustrate how these sources would affect the auditor’s reliance iii. Describe THREE attributes of audit evidence.A CPA firm performing an integrated audit of a public company may issue a. Two separate opinions, one on the financial statements and one on the effectiveness of internal controls A combination report on both the financial statements and the effectiveness of internal controls Yes Yes b. Two separate opinions, one on the financial statements and one on the effectiveness of internal controls A combination report on both the financial statements and the effectiveness of internal controls No No c. Two separate opinions, one on the financial statements and one on the effectiveness of internal controls A combination report on both the financial statements and the effectiveness of internal controls Yes No d. Two separate opinions, one on the financial statements and one on the effectiveness of internal controls A combination report on both the financial statements and the effectiveness of internal…Which of the following are rights of the auditors? a) The right to all information and explanations (from management) necessary for the proper conduct of the audit. b) The right to receive notice of all meetings of the shareholders (such as the annual general meeting) and to attend those meetings. c) The right to speak at shareholders’ meetings on matters affecting the audit or the auditor. d) The right to visit the branches of the audit firm and right to access all accounting books and records. e) The right to examine and evaluate financial and information systems, recommending controls to ensure system reliability and data integrity f) The right to review data about material assets, net worth, liabilities, capital stock, surplus, income and expenditures Only e) and f) Only d) , e) and f) Only a) , b) and c) Only a) , b) ,c) and d)
- Assume that items 1–8 are situations that Blas, CPA, has encountered during his audit of GELAY, Inc., a private company. List A represents the types of opinions the auditor ordinarily would issue, and List B represents a portion of the needed report modifications — whether an additional paragraph will be included. For each situation, select one response from List A and one (1) from List B. Select the best answers for each item the action the auditor would normally The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all. Assume the following: The auditor is independent The auditor previously expressed an unmodified opinion on the prior year’s financial Only single-year (not comparative) statements are presented for the current The conditions for an unmodified opinion exist unless contradicted by the The conditions stated in the items to be answered are material, unless otherwise Each item to be answered is…Choose the correct. Which of the following is not correct with regard to the Public Company Accounting Oversight Board?a. The board can expel a registered auditing firm without SEC approval.b. All registered auditing firms must be inspected at least every three years.c. The board members must be appointed by Congress.d. The board has the authority to set auditing standards rather than utilize the work of the Auditing Standards Board.Many companies request that their auditors provide them with other services, such as tax or consultancy, as well as the external audit. Discuss the arguments for and against auditors providing non-audit services.