AUD Study Group – Q1 2018 - Page 8

From AU 324 Service Organization

For purposes of this section, the following definitions apply:

User organization — The entity that has engaged a service organization and whose financial statements are being audited

User auditor — The auditor who reports on the financial statements of the user organization

Service organization — The entity (or segment of an entity) that provides services to a user organization that are part of the user organization's information system

Service auditor — The auditor who reports on controls of a service organization that may be relevant to a user organization's internal control as it relates to an audit of financial statements

What is the difference between Review under SSARS and review under SSAE. I am listening to Roger's lecture and don't find helpful in understanding the concrete difference between both.

Please help me understand.

This is not a reply to an AUD question but just venting….I am taking MC questions trending btw 75 to 93 but I have taken 2 MOCK exams and I just did horribly. I have to take AUD in 4 days….I have to pick my head up….I am so in the gray area right now!!!!…ugh

I am taking mine Saturday too!!

hey all I'm retaking AUD hopefully next month or the beginning of March, depending on when I get my NTS. I scored 73 on my first try (OUCH)…I need that NTS sooner rather than later! The testing center in my area has NOTHING available for FEB or MARCH right now. Need somebody to cancel!

@Teal. The way FASB sets standard for financial reporting and has created GAAP. Likewise, GASB set standards like GAAP for state and local governments.

The GAO basically makes recommendations to Congress about how the money is being spent to avoid wastage. I think independence both in fact and appearance is very important for this. The DOL audits the retirement plan offered by employees in the interest of the plan participants and not for the company that offers the plan.

I need some help in understanding a question from Becker…it asks if the auditor is unable to form on opinion on the new client's opening balance of inventory then the auditor may issue on unmodified opinion on which of the statements for the current year?

Ans choices: a) stmt of stockholder's equity only b) income stmt only c) stmt of cash flows only d) balance sheet only

The correct answer is D. Their explanation is the auditor can use the closing inventory balance to form an unmodified opinion on Balance Sheet only. For the rest of the stmts, the auditor the will issue a disclaimer. Why can't a unmodified be issued for the rest of the stmts?

Thanks!