Lecture 1 (Becker)

Question 1

Management’s responsibilities for financial statements (Auditor’s report)

Answer 1

Management's
Responsibilities
Design
Implementation
Maintenance
(1.3)

Question 2

Auditor’s responsibilities for financial statements (Auditor’s report)

Answer 2

Responsibility
Express an opinion
Plan
Perform
Obtain
Risks (assesses)
Tests internal control
Statements
Control
Reasonableness
Accounting estimates made by
Management
Evaluate the overall presentation
(1.3)

Question 3

Procedures to gather evidence for going concern

Answer 3

Gathered from:
Analytical procedures
Debt compliance
Minutes (stockholders and board of directors meetings)
Inquiry of client's legal counsel
Third parties
Subsequent events review
(1.3)

Question 4

Conditions and Events that may cause doubt of going concern

Answer 4

Financial difficulties
Internal matters
Negative trends
External matters
(1.3)

Question 5

Updated/Changed Opinion (format)

Answer 5

Date of auditor's previous report
Opinion type previously used
Reason for the prior opinion
Changes that have occurred
Statement (that the opinion is different)
(1.4)