Audit-Hard - YanyanXu.com AICPA = GAAP GAAS More Sufficient evidence of consistency = no reference needed Positive Confirmation for Material A\/R

Audit-Hard - YanyanXu.com AICPA = GAAP GAAS More Sufficient...

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YanyanXu.com AICPA = GAAP + GAAS + More - Sufficient evidence of consistency = no reference needed - Positive Confirmation for Material A/R Negative Confirmation for Immaterial A/R - Sufficient appropriate audit evidence to afford a reasonable basis for the opinion . - Scope Limitation = Scope Modification - Mitigating Factors of Going Concern = Increase Cash Flow - Actual agreements regarding restructuring of debt or amendments to covenants would be required. ( not just discussion ) - Lacks Independence = Automatic Disclaimer - A material weakness must be reported to management and those charged with governance, but would not be disclosed in an explanatory paragraph appended to an otherwise unqualified opinion. - GAAP allows a company to use different methods for costing different inventories as long as the methods are disclosed. UNQUALIFIED. - If going concern is repealed, explanatory paragraph need not be repeated. - The auditors should address their report to the entity that engaged them. - Scope Limitation Wording = Possible Effects on Financial Statement ≠ Scope Limitation Itself - Omits SCF = Qualification - Change = Note - Going Concern is substantial doubt + disclosures are adequate , then the audit report may be either: Unqualified with explanatory paragraph, or Disclaimed. - When management does not provide reasonable justification that a change in accounting principle is preferable and it presents comparative FS, the auditor should express a qualified opinion each year that the FS initially reflecting the change are presented.
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