Audit Opinions
For nonpublic companies, the opinion expressed by the auditors when they conclude that the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework.
What is an unmodified opinion?
Misrepresentation by a person of a material fact, known by that person to be untrue or made with reckless indifference as to whether the fact is true, with intent to deceive and with the result that another party is injured.
What is fraud?
CPA
What is a Certified Public Accountant?
When testing accounts payable, this is what is performed to test cutoff.
What is a search for unrecorded liabilities?
An attestation engagement designed to obtain and assurance that CPAs provide on subject matter or an assertion about the subject matter.
What is an examination?
A form of report in which the auditors state that they do no express and opinion on the financial statements.
What is a disclaimer of opinion?
An unintentional misstatement of financial statements or omission of an amount of a disclosure.
What is an error?
GAAP
What are generally accepted accounting principles?
Revenue is tested through ____ sampling.
What is attribute sampling?
An attestation engagement in which a practitioner performs specific procedures on subject matter and reports the findings without providing an opinion of a conclusion on it.
What is an agreed-upon procedure?
A modification of the auditors' opinion employing a clause such as an except for to limit the auditors' opinion on the financial statements.
What is a qualified opinion?
SEC
What is the Securities and Exchange Commission?
When making an adjustment to accounts payable, this is the other side of the entry.
What is expenses?
An engagement designed to provide only a limited degree of assurance about the conformance of subject matter with suitable criteria.
What is a review?
What is an adverse opinion?
A public accounting firm's contention that its audit work was adequate to support its opinion on financial statements.
What is due diligence?
PCAOB
What is the Public Company Accounting Oversight Board?
When making an entry to adjust the depreciation of fixed assets, this is the other side of the entry besides accumulated depreciation.
What is depreciation expense?
What are assurance services?
What is a scope limitation?
The moral principles and values that govern the behavior of individuals and groups.
What are ethics?
SASs
What are the Statements on Auditing Standards?
What are analytical procedures and inquiry?
A level of assurance that is less than the reasonable assurance obtained in an audit, but is at an acceptable level as the basis for the conclusion expressed in the accountant's review report.
What is limited assurance?