Transcribed image text: The AASB recently revised s standards related to audit reporting. ISA 700 (Revised), Forming an Opinion and Reporting on Finanolel Statements, requires the audtors report to include the folowing paragrpha under the headings "Basis for Opinion" and "Auditors Responsibes for the Audit of the Financial Statements (Click the loon to review the revised Basis for Opinion and Auditors Responsblities for the Audit of the Financial Read the reaurements (Click the lcon to view the Bass for Opinion and Auditor's Responsiblity sections in the standard unmodifed opinion ud report eample for a nonpublic compeny) Cick the loon to view the Basis for Opinion section in the standard unmodifed opinion audit report aample for a Statements paragraphs.) puble company) Requirement a. How does the information in the AAS company? (Select all that apply) revised paragraphs compare to the information in he Basis for Opinion and Auditors Responsibity sections in the standard unmodifed opinon audit report enample foranorpublie DA The SA report includes a sentence explicity stating that the audtor is indegendent and that the auditor has complied with he SBA Code. OB. While most of the auditors responsiblity paragraph is simiar between the two reports, he unmodfed opinion udit report for nonpuble entites includes an addional sentence indicating that the risk of not detecting a material misstatement arising from fraud is greater than the risk arising from an emor due to the possibility of forgery or collusion, ovemide of controls, intentional omissions of data, or mirepresentations OC. The ISA report indludes a statement containing the auditors conclusion that he audit evidence obraned provides a basis for the opinion ed The unmodifed opinion audit report for norpublie enties does not inude simlar disciosures OD. The ISA report notes that the audit was conducted in accordance with ISA standards rather than UuS. GAAS DE While the wording difers between the two reports, both the iA report and the unmodifed opinion audit report for nonpublic entites recognize that the dit entals the performance of procedures to obtain sonable assurance about whether the financial statements are free of material misstatement, whether caused by eror or fraud OF. The unmodifed opinion audit report for nonpublic enes includes a description of what the audit entals, including the audtors consideration of accounting policies, accounting estimates, and the overal presentation of the financial statements. The ISAreport does not include this Da The unmodified opinion audit report for nonpublic enties notes that the audit was conducted in accordance with ISA standards rther han US. GAAP OH. The ISA report explicity notes that the auditor is not providing an opinion on intermal control The unmodfed opinion udit report for norpublic entes does not include similar disclosures Requirement b. How does the information in the AASBS revised paragraphs compare to the information in the Banis for Opinion section in the standard unmodifed opinion audit report example for a puble company? (Select al hat apply OA The unmodifed opinion audit report for puble companies include a statement containing the auditor's conclusion that the audit evidence obtained provides a basis for the opinion issued. The ISA report does not include simlar disclosures OB. The ISA report includes a sentence explicity stating that the auditor is independent and that the auditor has complied with the ESBA Code. The audit report for public companies does not have he same disciosure OC. The ISA report netes that the audit was conducted in accondance wth ISA standards rather than PCAOB auditing standards DD. Both reports provide additional information that emphasines that reasonable assurance is not a guarantee. Cick to select your answers) Requirement b. How does the information in the IAASB's evised paragraphs compare to the information in the Basis for Opinion section in the sandard unmodified opinion audit report eample for a public company? (Select al that apply) DA The unmodifed opinion audit report for public companies indude a statement containing the audtors condusion that the udt evidence obtained provides a basis for the opinion issued. The ISA report does not include simlar disclosures OB. The ISA report includes a senterce expliotty stating that the audtor is independent and that the udtor has compled wth the ESBA Code. The audit report tor puble companies does not have the same disciosure Oc. The ISA report notes that the audit was conducted in accordance with ISA standards rather than PCAOB audting standards OD. Both reports provide additional information that emphasizes that reasonable assurance is not a guarantee. DE. The standard unmodified opinion audit report example for a public company notes that the audt was conducted in accondence with U.S. GAAP rather than PCAO8 auditing standards OF. While the wording differs between the two reports, both the ISA report and the unmodifed opinion audt report for public companies recognie that the audit entals the performance of procedures to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by eror or froud Requirement e. Discuss which of the three audt reports, in your opinion, provides greater udtor communications to uses of the fnencial statements The ISA reports discussion about the importanoe of audtor independence provides to users of the fnancial statements. Additionaly the expanded disoussion about the concept of reasonable assurance helps emphasie the tact that the aud in contrast, the ISA report provides about ky aspects of the udit process and what the auditor has and has not done Transcribed image text: The AASB recently revised s standards related to audit reporting. ISA 700 (Revised), Forming an Opinion and Reporting on Finanolel Statements, requires the audtors report to include the folowing paragrpha under the headings "Basis for Opinion" and "Auditors Responsibes for the Audit of the Financial Statements (Click the loon to review the revised Basis for Opinion and Auditors Responsblities for the Audit of the Financial Read the reaurements (Click the lcon to view the Bass for Opinion and Auditor's Responsiblity sections in the standard unmodifed opinion ud report eample for a nonpublic compeny) Cick the loon to view the Basis for Opinion section in the standard unmodifed opinion audit report aample for a Statements paragraphs.) puble company) Requirement a. How does the information in the AAS company? (Select all that apply) revised paragraphs compare to the information in he Basis for Opinion and Auditors Responsibity sections in the standard unmodifed opinon audit report enample foranorpublie DA The SA report includes a sentence explicity stating that the audtor is indegendent and that the auditor has complied with he SBA Code. OB. While most of the auditors responsiblity paragraph is simiar between the two reports, he unmodfed opinion udit report for nonpuble entites includes an addional sentence indicating that the risk of not detecting a material misstatement arising from fraud is greater than the risk arising from an emor due to the possibility of forgery or collusion, ovemide of controls, intentional omissions of data, or mirepresentations OC. The ISA report indludes a statement containing the auditors conclusion that he audit evidence obraned provides a basis for the opinion ed The unmodifed opinion audit report for norpublie enties does not inude simlar disciosures OD. The ISA report notes that the audit was conducted in accordance with ISA standards rather than UuS. GAAS DE While the wording difers between the two reports, both the iA report and the unmodifed opinion audit report for nonpublic entites recognize that the dit entals the performance of procedures to obtain sonable assurance about whether the financial statements are free of material misstatement, whether caused by eror or fraud OF. The unmodifed opinion audit report for nonpublic enes includes a description of what the audit entals, including the audtors consideration of accounting policies, accounting estimates, and the overal presentation of the financial statements. The ISAreport does not include this Da The unmodified opinion audit report for nonpublic enties notes that the audit was conducted in accordance with ISA standards rther han US. GAAP OH. The ISA report explicity notes that the auditor is not providing an opinion on intermal control The unmodfed opinion udit report for norpublic entes does not include similar disclosures Requirement b. How does the information in the AASBS revised paragraphs compare to the information in the Banis for Opinion section in the standard unmodifed opinion audit report example for a puble company? (Select al hat apply OA The unmodifed opinion audit report for puble companies include a statement containing the auditor's conclusion that the audit evidence obtained provides a basis for the opinion issued. The ISA report does not include simlar disclosures OB. The ISA report includes a sentence explicity stating that the auditor is independent and that the auditor has complied with the ESBA Code. The audit report for public companies does not have he same disciosure OC. The ISA report netes that the audit was conducted in accondance wth ISA standards rather than PCAOB auditing standards DD. Both reports provide additional information that emphasines that reasonable assurance is not a guarantee. Cick to select your answers) Requirement b. How does the information in the IAASB's evised paragraphs compare to the information in the Basis for Opinion section in the sandard unmodified opinion audit report eample for a public company? (Select al that apply) DA The unmodifed opinion audit report for public companies indude a statement containing the audtors condusion that the udt evidence obtained provides a basis for the opinion issued. The ISA report does not include simlar disclosures OB. The ISA report includes a senterce expliotty stating that the audtor is independent and that the udtor has compled wth the ESBA Code. The audit report tor puble companies does not have the same disciosure Oc. The ISA report notes that the audit was conducted in accordance with ISA standards rather than PCAOB audting standards OD. Both reports provide additional information that emphasizes that reasonable assurance is not a guarantee. DE. The standard unmodified opinion audit report example for a public company notes that the audt was conducted in accondence with U.S. GAAP rather than PCAO8 auditing standards OF. While the wording differs between the two reports, both the ISA report and the unmodifed opinion audt report for public companies recognie that the audit entals the performance of procedures to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by eror or froud Requirement e. Discuss which of the three audt reports, in your opinion, provides greater udtor communications to uses of the fnencial statements The ISA reports discussion about the importanoe of audtor independence provides to users of the fnancial statements. Additionaly the expanded disoussion about the concept of reasonable assurance helps emphasie the tact that the aud in contrast, the ISA report provides about ky aspects of the udit process and what the auditor has and has not done