Question 1

An auditor is engaged to review the financial statements of a non-issuer under SSARS. During the review, the auditor discovers a material departure from the applicable financial reporting framework. Management refuses to correct it. What should the auditor do?

Accepted Answer

Review = Limited Assurance. If error found -> Modify Report (describe the error). Note: SSARS now uses 'Qualified/Adverse Conclusion' terminology, but the mechanism is adding the paragraph.

Question 2

What mistakes do candidates make on this CPA question?

Accepted Answer

Thinking you issue an 'Adverse Opinion' (Audit term) vs 'Adverse Conclusion' (Review term) or just modifying the report.

An auditor is engaged to review the financial statements of a non-issuer under SSARS. During the review, the auditor discovers a material departure from the applicable financial reporting framework. Management refuses to correct it. What should the auditor do?

How to approach this question

Full Answer

Common mistakes

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