A1

Question 1

How does the involvement of another auditor affect an unmodified audit report, assuming the group auditor assumes responsibilities?

Answer 1

Involvement of another auditor does not prevent the issuance of an unmodified opinion. Also there will be no change to all part of the audit section.

Question 2

How does the involvement of another auditor affect an unmodified audit report, assuming the group auditor does not assumes responsibilities?

Answer 2

A division of responsibility affects the Opinion section of the report, but does not impact any other report section. Which means we can only modify the opinion section.

Question 3

How does the involvement of another auditor affect a qualified audit report, assuming the group auditor assumes responsibilities?

Answer 3

Involvement of another auditor does not prevent the issuance of an unmodified opinion. If the other auditor’s opinion is qualified, but the subject of the qualification is not material in relation to the overall consolidated statements, The group auditor need not make reference to the qualification in its report. The only thing that will change is the type of opinion and no change to other section of the audit.

Question 4

How does the involvement of another auditor affect a qualified audit report, assuming the group auditor does not assumes responsibilities?

Answer 4

A division of responsibility affects the Opinion section of the report, but does not impact any other report section. If the other auditor’s opinion is qualified, but the subject of the qualification is not material in relation to the overall consolidated statements, the group auditor need not refer to the qualification in its report.

Question 5

What are GAAP required information and what is the auditor responsility on them?

Answer 5

Financial statements, notes, supplementary info required by GAAP (e.g., inventory footnote, cash flow, segment info) are GAAP required and are part of the Audited FS.
Auditor’s responsibilities is to apply audit procedures.

Question 6

What is the SEC-required information, and what is the auditor’s responsibility for it?

Answer 6

The includes Selected quarterly financial data, certain schedules required by SEC, classified under supplementary information.
Auditors responsibilities is to apply limited procedure.

Question 7

What is the other required information, and what is the auditor’s responsibility for it?

Answer 7

They include CEO/CFO names, charts of net income trends, MD&A, company history, photos, and shareholder letter. Classified under other information.
Auditor’s responsibilities is to read information.

Question 8

What is the Unaudited, Non-required Extra Info, and what is the auditor’s responsibility for it?

Answer 8

They include Voluntary charts, ratios, non-financial highlights, marketing blurbs. Classified under extra information. Auditor’s responsibilities is to read information.

Question 9

What is the info unrelated to FS, and what is the auditor’s responsibility for it?

Answer 9

They include Advertisements, non-financial sections unrelated to FS. These are not covered by the audit, and auditors’ responsibilities are to ignore.