NON Issuers

Opinion

Titles of
paragraphs

Opinion

Basis of Opinion

Key audit
matters KAM

Responsibilities
of Management

Auditor
Reponsibilities

Emphasis-of-
Matter (EOM)

required
and/or
optional

Other matter

required
and/or
optional
 Substantial Doubt about Entity's aboility to Continue as a Going Concern

Other
information

Suplementary
information

Suplementary
information

Issuers
Opinion

Titles of
paragraphs

Opinion

Basis of Opinion

Critical audit
Required
matters (CAM)
required
Explanatory
and/or
paragraph
Optional

Nonissuer
Nonissuer

Issuer
Issuer

Predecessor auditor
Reissued
Not reissued

Prio year not audited

Reviewed or
Compiled
None

Other information
Material inconsistency (related to FS data) -> if mng refuses to revise -> communicate with those charged with g
Material inconsistency (not related to FS data) -> if mng refuses to revise -> discuss with legal counsel and deter

Supplementary Information (which accompanies same period audited FS)

Auditor may be engaged to report whether it is fairly stated in all material respects in relation to FS as a whole
If Adverse or Disclaimer of opinion on FS was issued -> not allowed to report on Suplementary information
Must obtain agreement of management that it understands it's responsibilities + written representation
Use same materiality level as FS
Evaluate appropriateness if methods used to prepare, reconcile
Communicate to mng accumulated misstatement identified

Reporting for Nonissuers

Reporting for Issuers

Required Supplementary information
Inquire about methods used to prepare it + obtain written mng representation letter
 Unqualified

Opinion
Basis of Opinion
Responsibilities of Management for the FS
Auditor Responsibilities for audit of FS

Key Audit Matters (optional)

Other information (optional)
Report on Other Legal and Regulatory Requirements (optional)

- must be first section

- "We have audited"...
- "In our opinion, the FS present fairly"… framework (GAAP)

Make reference to Component auditor when responsibility is not assumed by group auditor.

- must be second section

- "We conducted our audits in accordance with GAAS"…
- Indepenedent
- "We believe that audit evidence we have obtained is sufficient and appropriate to provide a basis for
our oppinion"

- Is added when the client engages the auditor to communicate KAMs

- Reference to related disclosures in the FS, if any.
- Provides visibility into the more complex areas or areas that require judgment in the audit

- Mng reponsible for preparation and fair presentation of FS… in accordance with GAAP
- … maintenance of internal control

- If the framework is GAAP -> required to add paraghraph about going concern evaluation.

- anywhere after 1 and 2

- Objective is to obtain reasonale assurance
- FS free from material misstatement
- conducted in accordance with GAAS

- Required paraghraph about ability to continue as going concern, even if not included in
Responsibilites of Mng.

For matters presented in FS

'Required when:
1. Justified change in accounting principle/reporting entity (including those changes in accounting
estimate that is inseparable from change in accounting principle eg:depreciation, or from
FIFO,AVGetc to LIFO)
2. Subsequent chage in audit opinion
3. Special purpose framework (except regulatory basis for general use)

May be used, but not required for events with significant effect on FS which is approapriatelly
disclosed in FS.
Going Concern - when alleviated and adequately disclosed -> not required, but may be used; if not
alleviated -> separate paragraph below

For matte not presented in FS

Required when:
1.Restricted use (included the required cases for reporting using regulatory or contractual bases
framework)
2. Subsequent change in audit opinion
3. Prior period audited by predecessor not reissued + report was not restricted
4. Comparative periods were not audited (or any other less then audit engagement) - in effect it is a
scope limitation
5. A report on compliance is included
antial Doubt about Entity's aboility to Continue as a Going Concern
added if included in annual report alongside FS and opinion. Mention that:
- it's mng responsibility
- auditor responsibility is to read and consider whther material insonsistency exist

when engaged to report on it express an opinion

"our audit was conducted for the purpose of forming an opinion on FS as a whole"
"in our opinion, th einformation is fairly stated…"

Auditor does not express an opinion on it

Unqualified

Opinion on Financial Statements

Basis of Opinion
Critinal Audit Matters

- "We have audited"...

- "In our opinion, the FS present fairly"… framework (GAAP)

Make reference to Component auditor when responsibility is not assumed by group auditor.

-FS is resposibility of mng (when compared to nonissuers, it doesn't specifically responsibilities over IC
on separate opnions)
- Auditor reposonsibility is express an opinion
- Registered with and followed PCAOB
- Independent
- Reasonable assurance
-Assess rick of material misstatement
- Examine on a test basis
- Evaluate accounting principles, estimates, overall presentation

Add: in case of Component auditor when responsibility is not assumed by group auditor - "We believe
that our audit and the report of the other auditors provide reasonable basis for our opinion"

Define CAM, mention it was communicated to audit committee + relates to accounts material to FS

For each identified CAM:

- Identify it (What?)
- Describe (Why?)
- Adress it (How?)
- Disclosures (Where?)
If no CAMs to disclose -> explicitly state that there are none

Language that is viewed as disclaming, qualifying, restricting or minimizing the auditor's

responsibility for CAM may not be used.
 Usually right after the opinion

In case of Going Concenr: must include "substatial doubt" and "going concern", no time period is
required to be mentioned

Required in All examples from Nonissuers EOM and other matters paragraph; additinionally required
when:
1. Going concern was not alleviated, unlike nonisuers who have a sperate paragraph
2. Other/suplimentary information is materially inconsistent or required other information was
ommited, unlike nonisuers who have a sperate paragraph
3. Prior year audit report is not presented or the opinion is updated;
4. Internal control effectiveness - when management is required to report but auditor has not been
engaged to perform the assessment

Unmodified opinion prior year + Qualified current year => just in the regular opinion and basis for opinion paragraph make
Disclaimer on prior year + Unmodified opinion current year => add separte opinion and basis for opinion for each year sep

Unmodified opinion prior year + Qualified current year => just in the regular opinion paragraph make sure to mention in t
Disclaimer on prior year + Unmodified opinion current year => inside opinion par. mention for which components of FS an

cessor auditor
He should read and compare the statement + obtain Rep letter from Successor auditor and Management
Successor auditor uses Other-Matter/Explanatory paragraph to mention that prior period was audited by a predecessor au

ear not audited

Other-Matter/explanatory Paragraph with details regarding the type of report

Other-Matter/explanatory Paragraph stating that auditor did not audit, review or compile prio period and Clearely mark it

information
ial inconsistency (related to FS data) -> if mng refuses to revise -> communicate with those charged with governance and consider imp
ial inconsistency (not related to FS data) -> if mng refuses to revise -> discuss with legal counsel and determine if it is matterial. If mate

ementary Information (which accompanies same period audited FS)

or may be engaged to report whether it is fairly stated in all material respects in relation to FS as a whole
erse or Disclaimer of opinion on FS was issued -> not allowed to report on Suplementary information
obtain agreement of management that it understands it's responsibilities + written representation
me materiality level as FS
te appropriateness if methods used to prepare, reconcile
unicate to mng accumulated misstatement identified

ting for Nonissuers

Separate report (cressreference in FS) or paragraph in audit opinion "Supplementary information"
Material misstatement and mng refuses to revise: 1. if combined report -> modify opinion; 2. if separate report -> withhold
If Adverse or Disclaimer of opinion on FS was issued -> not allowed to report on Suplementary information
ting for Issuers
 Separate report (cressreference in FS) or paragraph in audit opinion "Explanatory paragraph"
Material misstatement and mng refuses to revise express qualified or adverse opinion on supplemental info
Innability to obtain sufficient info -> only Disclaimer allowed
Effect of opinion issued on FS on the opinion on Supplemental info ->
1. if the basis of qualification applies to suuplemental info as well then express the same qualified opinion
2. if FS opinion is adverse or disclaimer -> same opinion for supplemental info (no matter which is the basis)

red Supplementary information

e about methods used to prepare it + obtain written mng representation letter
 Qualified (FS issues) Qualified (Audit issues) Adverse (FS)
Qualified Opinion Qualified Opinion Adverse Opinion
Basis for Qualified Opinion Basis for Qualified Opinion Basis for Qualified Opinion
[same] [same] [same]

- "We have audited".. - "We have audited".. - "We have audited"..

- "In our opinion, except for matters - "In our opinion, except for matters - "In our opinion, because of …discussed
described in Basis for Qualified described in Basis for Qualified in Basis for Adverse Opinion .. the FS DO
Opinion ... the FS present fairly"… Opinion ... the FS present fairly"… NOT present fairly"… framework
framework (GAAP) framework (GAAP) (GAAP)

- the opinion paragraph should state - the opinion paragraph should state
that qualificatin pertains to the possible that qualificatin pertains to the possible
effects on the FS effects on the FS

-Add paragraph with description for
material mistatement.
- … "suficient and appropriate to
provide a basis for our qualified
opinion"
-Add paragraph with description for
Audit issue.
- … "suficient and appropriate to
provide a basis for our qualified
opinion"
-Add paragraph with description for
material mistatement.
- … "suficient and appropriate to
provide a basis for our adverse opinion"

[same] [same] N/A

[same] [same] [same]

[same] [same] [same]

-> included when substantial doubt remains
If basis for Qualified opinion on FS also
applies to supplemental info -> then
issue same qualified opinion on
Suplemental info
Qualified FS issues
[Same]
- "We have audited"..
- "In our opinion, except for … the FS
present fairly"… framework (GAAP)
-Add paragraph with description for
material mistatement.
[Same]
[Same]
not allowed
Qualified Audit issues
[Same]
- "We have audited"..
- "In our opinion, except for … the FS
present fairly"… framework (GAAP)
- Add paragraph with description for
the issue "We were unable to obtain..
- Add "Except as discussed above, we
conducted our audits in accordance with
PCOAB."
[Same]
If for FS opinion is Adverse ->
prohibited to express an opinion on
Suplementary information
Adverse (FS)
[Same]
- "We have audited"...
- "In our opinion, because of ... the FS
do not present fairly"… framework
(GAAP)
- Add paragraph with description of
issue
[Same]
N/A
ular opinion and basis for opinion paragraph make sure to mention in the "except for" phrase the fact that it related to only current yea
e opinion and basis for opinion for each year separately (so double for each)

ular opinion paragraph make sure to mention in the "except for" phrase the fact that it related to only current year.
ion par. mention for which components of FS and/or year we were not able to obtain sufficient appropriate audit evidence

essor auditor and Management

hat prior period was audited by a predecessor auditor, type of opinion, date or report and any EOM, other or explanatory paragraph c

view or compile prio period and Clearely mark it in FS

those charged with governance and consider implications on the report or withdraw
al counsel and determine if it is matterial. If materrial communicate with those charged with governance

on to FS as a whole
ary information
presentation

plementary information"
> modify opinion; 2. if separate report -> withhold the report
ort on Suplementary information
anatory paragraph"
erse opinion on supplemental info

xpress the same qualified opinion

al info (no matter which is the basis)
 Disclaimer (Aud) Comments
Disclaimer of Opinion
Basis for Disclaimer of Opinion
[same]

When compared to Issuers (where the

name of paragraph stays the same in all
cases, exept disclaimer), for Non-issues
name changes in any modification
- "We were engaged to audit"...
- "We we do not express an opinion"
- "Because of the significant matters
described in Basis for Disclaimer of
Opinion"

-Add paragraph with description for

material audit issue.

N/A

Note: not allowed when Adverse of

Disclaimer
[same]

Note: never sufers any changes

- "Because of matters described in Basis for
Disclaimer of Opinion, we were not able to
obtain sufficient appropriate audit
evidence to provide a basis for an audit Note: changes only on Disclaimer, but
opinion on FS.
doesn't for Adverse
If for FS opinion is Disclaimer -> prohibited
to express an opinion on Suplementary
information

Disclaimer (Aud)

Disclaimer of Opinion on Financial Only in Discalimer it changes name f the

Statements
Basis for Disclaimer of Opinion paragraph
Critinal Audit Matters
- "We were engaged to audit"...
- "We were not able to obtain sufficient
appropriate audit evidence..,... we do not
express an opinion"
- Add paragraph with description of issue
Note: when compared to Nonissues - the
Opinion includes the description of the
modification, not the "Basis for opinion"

Note1: when compared to Nonissuers -

this paragrph mentions Mng's and
Auditor's responsibilities, not separate.

Note2: Nonissuers changes this paragraph

changes completely, only mention that:
- FS is resposibility of mng
- auditor is Registered with PCAOB and are
required to be independent
All the rest is ommited.
on any kind of change of opinion, for
Issuers (since it doesn't contain the
description of the issue) it only changes
when there are modifications due to audit
issues/limitations of scope.

N/A

Note: not allowed when Adverse of

Disclaimer
it related to only current year.

te audit evidence

r or explanatory paragraph content

 What kind of information it Level of "assurance"
Standard Results in expression of:
covers service

positive opinion, high level

of assurance (similar to audit
Examination
but applied to information
(nonissues&issuer)
other than financial
statements)

CPAs offer an independent

expression of assurance on
subject matters other than
basic financial statements*
SSAE Limited (negative) assurance
*as a concequence -> No Review (Issuer)
Conclusion not opinion
reference is made to
historical FS or GAAP

AUP No assurance
(nonissues&issuer) List of findings

What kind of information it Level of "assurance"

Standard Results in expression of:
covers service
 Preparation
Non-attest, No report
(nonissuer)

CPAs perform three levels of

service with respect to Compilation Attest, issue a report
Unaudited financial (nonissuer) without opinion
SSARS Statements of an Nonissuer
AND to Prospective financial
statements

Attest & limited/negative

Review (nonissuer) assurance, issue a report
with conclusion

SSARS engagements involve 3 parties: Management, Accountant, intended users.

You can not provide Preparation and compilation to an issuer which means
You can not Examine financial statement (neither for issuers or nonissuers), since SSAE only relates t
BUT you can Review the financial statements under SSARS, which means limited review for unaudite
You can not have an AUP on Financial Statetements. So no AUP on SSARS

Attestation risk = IR X CR X DR
Does not apply to to AUP
Scope
Subject Matter: "To obtain a reasonable assurance
about whether (subject matter)… is in accordance with
the criteria/guidlines"
Assertion: "To obtain a reasonable assurance about
whether management's asserion if fairly statetd"
Direct examination: "To obtain reasonable assurance by
measuring (the subject matter) against the criteria set in
Note x"
Subject Matter: "To obtain a limited assurance about
whether any material modifications should be made to
(subject matter)… in order to be in in accordance with
the criteria"
Assertion: "To obtain a reasonable assurance about
whether management's asserion if fairly statetd"
"To perform this agreed-upo procedures"
Scope
Report mentions the following (general)
"The procedures are substantially less in
extent than examination.. Accordingly, we
do not express such an opinion"
"The level of assurance is substantially
lower than in examination"
"Based on our review, we are not aware
of any material modifications that should
be made to.."
"We were not engaged to and did not
conduct an examination or review"
"Accordingly we do not express such an
opinion or conclusion"
The engaging part has acknowleged that
the procedures performed are appropriate
to meet the purpose
Report mentions the following (general)
 N/A N/A

Compiled financial statements that omit substantially all

"we are not required to verify accuracy of
the disclosures required by GAAP are not comparable to
completeness of the information provided
financial statements that do include required GAAP
to us"
disclosures. Accordingly, the Year 1 statements are not
"our engageent cannot be relied upon to
comparable to the Year 2 statements and CPA cannot
identify or disclose any FS misstatements"
report on them.

"A review is substantially less in cope than

audit,…. Accordingly we do not express
such opinion."
obtain limited assurance, primarily by performing
"A review includes primarily analytical
analytical procedures and inquiries, as a basis for
procedures .. And making inquiries of
reporting whether the accountant is aware of any
management"
material modifications that should be made to the
financial statements for them to be in accordance
(heading) Accountant's Conclusion: "Based
with the applicable financial reporting framework
on our review, we are not aware of any
material modification that should be
made to accompanying FS..."

ers), since SSAE only relates to information other than FS.

s limited review for unaudited FS for nonissuers.
 If client is the responsible party and
Required to be the if we fail to obtain Written
AUP Financial Forecast
independent Assertion in assertion based
engagement:
Expectations to future period
General or Restricted Use

It is Mng responsibility for preparing and

presenting .. in accordance with AICPA"
"In our opinion, the forecast is presented in all
withdraw, or if not allowed by law - material respects, in accordance with the
yes
disclaim guidelines by AICPA"
"there will be differences between forecast and
actual results"
We do not have a responsibility to update

withdraw, or if not allowed by law -

yes n/a
modify and restrict

Additional condition to "I AM SURE": must include

see the a summary of the significant assumptions.
modify the report based on scope general The report should include also:
yes
limitation descriptio "there will be differences between forecast and
n actual results"
We do not have a responsibility to update

Required to be
Financial Forecast
independent
 A practitionaer should not prepare prospective FS
that excludes the summary of significant
No assumptions or hypothetical assuptions or a
description of the limitation of usefulness of the
presentation

A compilation report
No assurance given
The CPA should read and consider whether
presented in conformity with AICPA, he is not
No, but lack of required to gather supporting evidence
independece Management reporsible for the prospective FS
disclosed (reasons The CPA did not examine or review, nor was he
not required) required to perform any procedyres to verify
accuracy or completeness of management's
assuptions;
"prospective results may not be achieved;
No rsposnibility to update

Yes Do not express and opinion

 Financial Projection Pro-forma FS

"what-if" scenario in future Re-making historical FS in which a hypothetical scenario effect was
Restricted use included *eg. Acquisition of a company

onsibility for preparing and

Make referece to the FS from which the historical data
n accordance with AICPA"
derived and mentioned whether the FS were audited or
n, the forecast is presented in all
reviewed.
cts, in accordance with the
"in our opinion, based on criteria in Note 1, management's
AICPA"
assumptions provide a reasonable basis for the presenting
differences between forecast and
the significant effcets directly attributable to above
transactions.."
ve a responsibility to update

Make referece to the FS from which the historical data

derived and mentioned whether the FS were audited or
reviewed.
"in our opinion, we are not aware of any material
n/a
modifications that should be made to management's
assumptions in order to provide a reasonable basis for the
presenting the significant effcets directly attributable to
above transactions.."

dition to "I AM SURE": must include

the significant assumptions.
ould include also:
n/a
differences between forecast and

ve a responsibility to update

Financial Projection Unaudited FS (most used)

 1.Mark each page of FS "no assurance provided" or a
singural disclaimer that makes it clear, transfer to a
r should not prepare prospective FS compilation engagement if 1&2 not possible. If non
the summary of significant accepted - withdraw.
r hypothetical assuptions or a 2. Include a description of the reporitng framework
the limitation of usefulness of the 3. FS that omit substantially all disclosures - permited if
proper disclosure and not with the intent to misslead.
May be labled as omitted

report
given
The accountant compiling financial statements might:
d read and consider whether
- omit substantially all of the disclosures required by GAAP
onformity with AICPA, he is not
provided the omission is not undertaken to mislead the
ther supporting evidence
users of the financial statements and is properly disclosed
reporsible for the prospective FS
in the accountant's report as an additional paragraph;
ot examine or review, nor was he
- generally would read those statements to consider
rform any procedyres to verify
whether they appear to include adequate disclosure;
mpleteness of management's
-might issue a compilation report on one or more, but not
all, of the basic financial statements.
esults may not be achieved;
y to update

If material misstatements are found and management is

unwilling to revise the financial statements, the
accountant should issue a modified conclusion in the
Accountant's Review Report.
s and opinion
Use the heading "Qualified Conclusion" or "Adverse
Conclusion". Provide a description of the matter giving rise
to the modification ("Basis for Qualified Conclusion," or
"Basis for Adverse Conclusion").
Auditig Standard: A different situation: Report for Compliance with
contractual agreements or regulatory requirements in connection with
audit of FS: in this case -> Must have audited the client FS, only Negative
assurance and the engagement is neither a compliance audit nor an
atestation.

Compliance Compliance MD&A

with specified requirements Internal control over Compliance

Only if all conditions are met:

1. The client accepts responsibility for entity's relevant compliance and
internal control over compliance; and
2. Client evaluates the enetity's compliance or internal control over
compliance; and
allowed
3. sufficient evidence exists

CPA accumulates sufficient evidence to express an opinion;

Assess risk, determine materiality, design procedures (test of controld and
other), obtain writen representation from management, prepare report

n/a
allowed

Only if both conditions met:

1. The client accepts responsibility for entity's relevant compliance and
internal control over compliance; n/a
2. Client evaluates the enetity's compliance or internal control over
compliance
Reporting on controls
at Service
Organizations

see "Reporting on IC
over FR" page

n/a

n/a
Integrated audit

For issuers (large accelerated and accelerated) - it is required to perform integrated audit, auditiong both FS and m
For non-issuers - they should be engaged

For both, issuers and Non-issuers, the objective of the audit of IC over finanical reporting is to Express and Opinion

Opinion on IC over Financial reporitng

Restricted use

Management requirement

Writen mng representation

Extent of testing
Communication date
Communication to

Report
Rport date
Evidence
Material weakness present
Disclaimer of opinion

Subsequent events
rated) - it is required to perform integrated audit, auditiong both FS and management's assessment of the effectiveness of IC over FS (ICFR

jective of the audit of IC over finanical reporting is to Express and Opinion over it's effectiveness
Internal controls over Financial Reporting Internal controls over Financial Reporting
Issuers (SOX 404) Nonissuers (SAS)
yes yes
Not restricted Not restricted

Annual report should contain an internal control report

Mng should provide written assesment about
that states mng's responsibility for establishing and
effectiveness of IC that should acompany auditor's
mentaining IC and contains an assessment of the
report
effectiveness

mandatory mandatory
all relevant assertions all relevant assertions
by release date by release date
Audit committee and mng Those charged with governnance and mng
yes (separate or combined with audit)
yes (separate or combined with audit)
"Report of Independent Registered Public Accounting
"Independent Auditor's Report"
Firm"

make reference to FS audit make reference to FS audit

Mng is reporsinble for FS and to maintain effective IC, our obtain reasonable assurance whther effective IC
responsibility is to express opinion on entity's IC over over financial reporting was maintained and to issue
fiancial reportingbased on our audits an auditor report that includes an opinion

Inherent limitation paragraph Inherent limitation paragraph

same as audit report same as audit report
sufficient appropriate evidence sufficient appropriate evidence
adverse opinion adverse opinion
should ad a separate paragraph "disclaimer due to scope should ad a separate paragraph "disclaimer due to
limitation" scope limitation"
Inquire of mng, obtain written representation and add an Inquire of mng, obtain written representation and
explanatory paragraph add an explanatory paragraph
tiveness of IC over FS (ICFR)

Financial statement audit (not specific IC) Internal controls over Financial Reporting
Nonissuers Govt GAGAS
No NO opinion
Restricted

n/a

n/a yes
not all
60 days after audit report and is Restricted
Those charged with governnance and mng
Report on IC over FR PLUS written report of
included in audit report auditor's understandig of internal control and
assessment of control risk in all audits

n/a FS audit report should reference to IC report

"We do not express an oppinion of the effectiveness

of the IC"
Describe the findings or state "we did not identify
any deficiencies that we consider material
weaknesses, however they may exist"

"purpose of this report" paragraph in which describe

the scope

-> "Compliance and Other matters" par. Which

states that evaluating compliance with law and
requlations with direct and material effect on FS is
part of developing an opinion on FS.
-> The report should include a statement that the
compliance audit included examining on a test basis,
evidence about the entity’s compliance.
-> "Howerer, providing an opinion on compliance
with those provisions was not an objective of our
audit and we do no express such opinion."
Interna Control over Compliance
Govt Single audits
Yes - for each program
 SOC 1
SSAE examination engagement
Yes
retsricted
Yes, 2 components:
1. Management written description of the service organization
system
2. Management written assertion that:
2.1 the description of the system fairly presents the design and
implementation of the system; AND
2.2 that the the controls are suitable designed to achive the control
objectives,

as of a specified date.

mandatory

by release date

"Independent Service Auditor Report..

Make reference to the service organization description and

assertions document

"to express an opinion on the fairness of the description and the

suitability of design.."

Inherent limitation paragraph

Add "Other matter" and specify that no work was done regarding
effectiveness of the controls
sufficient appropriate evidence

service auditor should consider subsequent events

 SOC 2
SSAE examination engagement
Yes
retsricted
Yes, 2 components:
1. Management written description of the service organization
system
2. Management written assertion that:
2.1 the description of the system fairly presents the design and
implementation of the system; AND
2.2 that the the controls are suitable designed to achive the control
objectives; AND
2.3 Controls described Operated effectively,
throughout a specified date.

mandatory

by release date

"Independent Service Auditor Report..

Make reference to the service organization description and

assertions document

"to express an opinion on the fairness of the description and the

suitability of design… and operating effectiveness"

Inherent limitation paragraph

Add "Description of tests of controls" parag. And mention "the

specific controls tested and the nature, timing and results pf those
tests are listed in (section nr of the description)"
sufficient appropriate evidence

service auditor should consider subsequent events

GAGAS Audits of FS Requirements: Prior year audit and atestation issues -> Manag
Fraud: GAGAS requires additionl attention to fr
Developing a finding: for each fiding the audito
Documentation: work paper and departures fo
Communications: to contracting party and coq

Reporting on all: FS in accordance with GAAP or other, IC over Finan

GAGAS requires report on IC over FS (not report on compliance) BUT
The communication of findgs of significant defficiencies and materia

Communication to outside parties: may be done when management

The audit report is almost the same as the nonissuer GAAS
If a separate report on Internal control, then keep in mind that it sho
we have considered IC in our audit of FS "but n
"We do not express an opinion on the effectiv
A separate paragraph "Purpose of this report"
GAGAS also requires a Written report of auditor's understanding o
The representation letter should include a statement that management has di
Management's representation is not limited to only material govern

Atestation Examination
Review
AUP

Compliance with laws

IC over compliance with laws
MD&A
Reliability of performance measurements

Performance audits
Analysis that provide
help to mng how to
improve operations Effectiveness, econom and efficiency
Internal conrol
Compliance
Prospective analysis
atestation issues -> Management respose should be included in risk assessment
es additionl attention to fraud, abuse or noncompliance
: for each fiding the auditor must determine the criteria, condition (status), the cause of the condition or devialtion, and the effect
k paper and departures form GAGAS
contracting party and coqnizand legislative committees

AAP or other, IC over Financial reporting and Compliance with provisions and regulations, contracts, grant agreements or federaw aw
report on compliance) BUT there is no requiremnt to give an opinion on IC, just report of the scope and findings
t defficiencies and material weaknesses in IC should also include written managements responses

e done when management fails to satisfy legal requiremnts to report and fails to take appropriate steps to respond to knowl or likely fr
nonissuer GAAS
en keep in mind that it should state that:
IC in our audit of FS "but not foe the purpose of expressing an oppinion on effectiveness of the IC"
an opinion on the effectiveness of IC"
h "Purpose of this report"
auditor's understanding of the internal control and the assesment of control risk.
ment that management has disclosed all governmental programs to the auditor.
ed to only material government programs.

m and efficiency
or devialtion, and the effect

rant agreements or federaw awards

s to respond to knowl or likely fraud or noncompliance

Single audit For recepients of federal financial assistance and subrecipients (not to contractors)
designed to improve effectiveness of audits of federal awards
Audits should be conducted in accordance with both GAGAS and GAAS
That is why additional requirements apply to there recepients (expanded internal control documenta
Is governed by Code of Federal Regulations ("Uniform Grant Guidance"
Entities in scope: entities that expend total federal assistance >= 750,000$ in a fiscal year
The act allows either "single" or "program specific" audit
The program specific audit require meeting highly restrictive criteria (expenditures under a single fed

Materiality: separate for each major program, not FS as a whole

Major program: either expend >=750,000$ (A) & are not "low risk" OR expend less but classified "high

Report should be submited electronically at earlier of 30 days after audit report or 9 months after yea
The report must include: FS, summary of prior year findings, audit report, corrective actions.

Scope of audit: express an opinion on FS and relevant schedules. Also should consider IC, compliance
IC: the auditor should consider IC over compliance unsing major programs as a basis for both testing a
Compliance: auditor testing is required to provide evidence to support an opinion on compliance for e

Testing:
Uniform Guidance includes a complinace supliment that describes required audit procedures in a mat
Uniform Requirements:
Administrative requirements - compliance with procurement standards, main
Cost principles describes cost that are generally allowed or unallowab
Compliance supplement - allowed activities, cash and asset management, pro

Opinion expressed on:

Fair presentation on FS (GAAP)
Fair presentation on Schedule of Expenditures of Federal awards (SEFA)
Compliance for each major program and report on IC over compliance (Single
Report on (no opinion):
IC over financial reporting and compliance with federa; statutes (GAGAS), inc
Schedule of Findings and Questioned Costs that includes a summary of audito
audit opinion type for FS & major programs, a statem
Material noncompliance
Identification of each major program
Dolar threshold used (750k)
State whether it's a low-risk auditee

Findings to report Significant deficiencies and material weaknesses in IC over major programs
Material noncompliance related to major programs
Questioned costs over 25,000$
Circumstances concenring why opinion on compliance was other than unmod
Fraud
 to contractors)

nded internal control documentation like auditor's understanding of IC system and assessment of contro risk, see IC over FR; reporting on

0,000$ in a fiscal year

(expenditures under a single federal program, and the term of the award to not require FS audit)

Type A can not be low risk if: material weakness in IC, modified opinion in past, que
OR expend less but classified "high risk" (B) Coverage testing: low risk - 20%, other - 40%

audit report or 9 months after year end. Keep it for 3 years

eport, corrective actions.

o should consider IC, compliance and follow up on previous audit findings

grams as a basis for both testing and reporting.
ort an opinion on compliance for each major program.

equired audit procedures in a matrix.

with procurement standards, maintain appropriate UC over federal funds, performance monitoring and reporting, subrecipient monitoring
re generally allowed or unallowable + cost allocation methodologies for indirect costs
cash and asset management, program income, subrecipient monitoring etc

es of Federal awards (SEFA)

port on IC over compliance (Single Audit Report)

with federa; statutes (GAGAS), including: scope, results of tests and reference to a separate Schedule of Findings and Questioned costs (be
that includes a summary of auditor's results mentioned:
or FS & major programs, a statement on material weaknesses or significant deficiencies found during FS audit & during auditing major prog

h major program

ow-risk auditee

esses in IC over major programs

ompliance was other than unmodified

k, see IC over FR; reporting on ICFR, compliance with requirements)

, modified opinion in past, questioned costs that exceed 5%of total federal awards

rting, subrecipient monitoring etc

ings and Questioned costs (below)

t & during auditing major programs (Single audit)