[jeff]

AUD Resources:

Free AUD Notes & Audio – https://www.another71.com/cpa-exam-study-plan

AUD 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

AUD Score Release: https://www.another71.com/cpa-exam-scores-results-release

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[jackaroe]

Q. Reissue of a report.

1. Does the reissue of an audit report (by the predecessor auditor) retain the original date of the original report if the pred.auditor has taken a look at stuff that has happened since and made no changes to the report?

2. If he does make changes, what does the date of the report change to?

3. How can the successor auditor ‘reissue the report' if changes have occurred to make the modified report into an unmodified report. If it is a comparative audit – does the auditor have to include the ‘reissue report'. When does the successor include an unmodified with an 'emphasis of matter'.

Where in the clarified statements can I find this issue? Thanks in advance.

[jackaroe]

Q. Reissue of a report.

1. Does the reissue of an audit report (by the predecessor auditor) retain the original date of the original report if the pred.auditor has taken a look at stuff that has happened since and made no changes to the report?

2. If he does make changes, what does the date of the report change to?

3. How can the successor auditor ‘reissue the report' if changes have occurred to make the modified report into an unmodified report. If it is a comparative audit – does the auditor have to include the ‘reissue report'. When does the successor include an unmodified with an 'emphasis of matter'.

Where in the clarified statements can I find this issue? Thanks in advance.

[mystical guy]

Someone can give a better explanation but here's what I remember:

(AU 530 .06) Predecessor reissues the original report, with the original report date, and has no further responsibility to make inquiries about subsequent events. Using the original date removes any implications that he reviewed or audited events after the original report date. The auditor, however, does have responsibility for material subsequent events under AU 508.70-.73 (report is to be included in a registration statement with the SEC). Under these circumstances, he may refuse the use of his report to be included in the registration statement.

Secondly, what if there are subsequent events that will need disclosure/adjustment of the old financials? The old report date is still used but a disclosure is performed in the notes clearly indicating in a caption that the event is “unaudited”. (AU 508.7-.8)

I'm not so sure about what happens when the auditor wants to change an old opinion. Hopefully someone with more experience/knowledge can give a better solution.

CPA - Since 2015
CISA - Smashed 2012
CIA - Passed 2015

[mystical guy]

Someone can give a better explanation but here's what I remember:

(AU 530 .06) Predecessor reissues the original report, with the original report date, and has no further responsibility to make inquiries about subsequent events. Using the original date removes any implications that he reviewed or audited events after the original report date. The auditor, however, does have responsibility for material subsequent events under AU 508.70-.73 (report is to be included in a registration statement with the SEC). Under these circumstances, he may refuse the use of his report to be included in the registration statement.

Secondly, what if there are subsequent events that will need disclosure/adjustment of the old financials? The old report date is still used but a disclosure is performed in the notes clearly indicating in a caption that the event is “unaudited”. (AU 508.7-.8)

I'm not so sure about what happens when the auditor wants to change an old opinion. Hopefully someone with more experience/knowledge can give a better solution.

CPA - Since 2015
CISA - Smashed 2012
CIA - Passed 2015

[Anonymous]

Hello fellow CPA candidates! While studying the new Becker material for audit (2014 edition), I noticed the 10 generally accepted accounting principles (Mnemonic: TIP PIE ACDO) is not in this edition. I was confused about this since when Becker went over the accepted principles for attestation engagements, Tim Gearty did mention them. Does anyone else who has studied prior to 2014 find this odd? I did not hit the practice MCQs yet, so I'm unsure if there will be questions. Any insight provided will be greatly helpful.

[Anonymous]

Hello fellow CPA candidates! While studying the new Becker material for audit (2014 edition), I noticed the 10 generally accepted accounting principles (Mnemonic: TIP PIE ACDO) is not in this edition. I was confused about this since when Becker went over the accepted principles for attestation engagements, Tim Gearty did mention them. Does anyone else who has studied prior to 2014 find this odd? I did not hit the practice MCQs yet, so I'm unsure if there will be questions. Any insight provided will be greatly helpful.

[jackaroe]

Let's say that a company recorded a sale for the current year and shouldn't have (e.g., item was sold FOB – destination and the product didn't arrive until the close of the FY). What would be the J/E to correct it? Where do COGS and AP figure in.

How would this entry be affected if it wasn't a sale but they didn't include inventory on consignment and should have. TIA.

[jackaroe]

Let's say that a company recorded a sale for the current year and shouldn't have (e.g., item was sold FOB – destination and the product didn't arrive until the close of the FY). What would be the J/E to correct it? Where do COGS and AP figure in.

How would this entry be affected if it wasn't a sale but they didn't include inventory on consignment and should have. TIA.

[jeff]

bump – the study groups got lost in the score release fog.

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[jeff]

bump – the study groups got lost in the score release fog.

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

“When the auditor is unable to satisfy himself regarding the opening amount of inventory, he or she must disclaim on opinion on the Income Statement because of the inability to verify the COGS for the year. The auditor may, however, issue an unmodified opinion on the Balance Sheet, since inventory can be verified on the balance sheet date.”

The above was an explanation from a 2013 question from Becker. I thought that you weren't allowed to issue piecemeal opinions? Can someone explain this? Or am I missing what a piecemeal opinion is? I thought that you couldn't issue different opinions on separate financial statements. Please explain!!

[Anonymous]

“When the auditor is unable to satisfy himself regarding the opening amount of inventory, he or she must disclaim on opinion on the Income Statement because of the inability to verify the COGS for the year. The auditor may, however, issue an unmodified opinion on the Balance Sheet, since inventory can be verified on the balance sheet date.”

The above was an explanation from a 2013 question from Becker. I thought that you weren't allowed to issue piecemeal opinions? Can someone explain this? Or am I missing what a piecemeal opinion is? I thought that you couldn't issue different opinions on separate financial statements. Please explain!!

[jeff]

NINJA Cassandra: 22 Point Increase on AUD (93)

HiYa!!!

https://www.another71.com/ninja-cpa-blogger-cassandra-4/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[jeff]

NINJA Cassandra: 22 Point Increase on AUD (93)

HiYa!!!

https://www.another71.com/ninja-cpa-blogger-cassandra-4/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

@amh16 I think what they mean is if they're engaged specifically to audit the balance sheet, they can do that without a problem. But if they're engaged to audit the financial statements as a whole, then they can't issue an unmodified opinion. Does that help any?

[Author]

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