[Determined CPA]

The question is:

Which of the following items is explicitly included in the standard audit report expressing an unqualified opinion?

a. an audit includes examining on a test basis evidence supporting the amount and disclosures in the financial statements

b. those standards require that we plan and perform the audit to ensure that the financial statements are free of misstatement

c. we conducted our audit in accordance with generally accepted accounting principles

d. we believe that our audit provides a reasonable basis for our review

Answer: a

I picked c…I thought consistency and adequate disclosures were implied and opinion and being prepared in accordance with GAAP were explicit?

The answer says c is wrong bc it’s not GAAP that must be stated but GAAS that must be stated???

HELP!!

Also,

i’m seeing a lot of MCQs where one of the answers is “restrict use of the report” and for some reason, my mind is telling me to pick it all the time. is this happening to anyone else?

Here is my understanding:

Restricted reports include:

1. Comfort letters

2. Agreed upon Procedures, i.e. financial projection.

3. What else???

Thank you!

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[stoleway]

Determined CPA

i think the answer is A) because an the auditor is required to include this explicitly. Remember this expression is part of the auditors responsibility section of the report.

choice B) could have been explicit if the sentence had ended with MATERIAL MISTATEMENT (auditor only cares about material mistatement)

choice C) is obviously wrong because audit is done in accordance with GAAS

choice D) is wrong because the wording is not right

These are the restrited reports that I know of..

1. Agreed upon procedures

2. Financial projection

3 Communication of significant deficiencies and material weakness

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

Determined CPA

i think the answer is A) because an the auditor is required to include this explicitly. Remember this expression is part of the auditors responsibility section of the report.

choice B) could have been explicit if the sentence had ended with MATERIAL MISTATEMENT (auditor only cares about material mistatement)

choice C) is obviously wrong because audit is done in accordance with GAAS

choice D) is wrong because the wording is not right

These are the restrited reports that I know of..

1. Agreed upon procedures

2. Financial projection

3 Communication of significant deficiencies and material weakness

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

@OP

It looks like your confusion is stemming from the fact that you must explicitly comment on the client's accounting principles being in accordance with GAAP in the opinion paragraph of an unmodified opinion, while the audit itself (auditor's responsibility, and what c is referring to) is to be performed in accordance with Generally Accepted Auditing Standards, not GAAP.

[Anonymous]

@OP

It looks like your confusion is stemming from the fact that you must explicitly comment on the client's accounting principles being in accordance with GAAP in the opinion paragraph of an unmodified opinion, while the audit itself (auditor's responsibility, and what c is referring to) is to be performed in accordance with Generally Accepted Auditing Standards, not GAAP.

[stoleway]

Sorry I meant to say the audit is not done in accordance to Gaap in reference to the questions above

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

Sorry I meant to say the audit is not done in accordance to Gaap in reference to the questions above

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[nolifecpa]

GAASSSSSSssssssssssss…..is mentioned in the sssssSSSSSSSScope paragraph

GAAPPPPPPppppppppp…is mentioned in the oPPPPPPPPPppppppppppppinion paragraph

here is my list of restricted reports:

prospective financial stmts

agreed upon procedures

OCBOA (for regulatory agency)

special purpose financial presentation

comfort letters

compliance with contracts

specified elements

required communication with audit committee

MD&A

REG-65,71,74,73,70,74,79
BEC-60's,60's,69,71,76*,78
FAR-67,66,65,79
AUD-54,60's,65,83*,69,80
*expired

DONE

[nolifecpa]

GAASSSSSSssssssssssss…..is mentioned in the sssssSSSSSSSScope paragraph

GAAPPPPPPppppppppp…is mentioned in the oPPPPPPPPPppppppppppppinion paragraph

here is my list of restricted reports:

prospective financial stmts

agreed upon procedures

OCBOA (for regulatory agency)

special purpose financial presentation

comfort letters

compliance with contracts

specified elements

required communication with audit committee

MD&A

REG-65,71,74,73,70,74,79
BEC-60's,60's,69,71,76*,78
FAR-67,66,65,79
AUD-54,60's,65,83*,69,80
*expired

DONE

[Determined CPA]

Thank you everyone! And thank you so much nolifecpa for that list…im always so confused with what is restricted.

test is Wednesday!! ahhhh

doing MCQs and re-reading notes for the next 48 hours.

good luck to you all.

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[Determined CPA]

Thank you everyone! And thank you so much nolifecpa for that list…im always so confused with what is restricted.

test is Wednesday!! ahhhh

doing MCQs and re-reading notes for the next 48 hours.

good luck to you all.

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[Author]

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