study guide_midterm I 1

study guide_midterm I 1 - BUS 129A Study Guide (Mid-term I)...

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BUS 129A Study Guide (Mid-term I) Chapter 17 1. Understand the difference between the standard audit report for nonpublic and public company audit. 2. Understand the basic conditions that must be met before auditors can issue a standard unqualified auditors’ report. 3. Understand the circumstances that could result in the addition of explanatory language to the auditors’ standard audit report. Understand the report modification. 4. Understand the circumstances that could result in the qualified opinions/ adverse opinions/ disclaimers of opinion? What is the report modification? 5. What is auditor’s responsibility in regards to other information (information other than audited financial statements) included in the annual report? 6. What is auditor’s responsibility in regards to additional information beyond the basic financial statements that is included in the auditor submitted document? Chapter 5 1. Identify and explain the components of audit risk. 2. Understand the third field work standard ( the concept of “sufficient and appropriate audit evidence”) 3. Understand the basic types of auditing procedures. 4. Understand the basic types of substantive procedures. 5. Understand different types of analytical procedures. 6. Understand how to audit accounting estimates. Background Concepts 1. Be able to distinguish errors and fraud. Be able to distinguish the two different types of fraud. 2. Understand auditor’s responsibility in regards to misstatements due to errors, fraud and illegal acts. 3. Understand management assertions (especially “existence” and “completeness”) Chapter 6 1. Understand the second field work standard. 2. Be aware of the requirement of “attempt communication with processor auditor”. 3. Understand the relationship between materiality and scope of audit procedures. 4. Understand “directional testing”. Chapter 7 1. Explain how internal control relates to financial statement audit. 2. Explain the required level of understanding internal control. 3. Understand the two concepts of control risks (planned assessed level and assessed level). 4. Understand deficiency in I/C, significant deficiencies and material weaknesses.
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Practice Question Set 1. When an auditor issues a qualified opinion for a departure from GAAP an explanatory paragraph is added. In addition, which, if any, paragraphs to the report are modified?
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study guide_midterm I 1 - BUS 129A Study Guide (Mid-term I)...

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