A1-Unmodified (Unqualified) Opinion

Question 1

How consistency is presented in an audit report?

Answer 1

Consistency is implicit in the auditor’s report, and will be explicitly mentioned in an emphasis-of-a-matter paragraph only if there are issues with consistency

Question 2

what is the content of an audit report of a private company (AICPA)?

Answer 2

1. Title: indicates that is is a report of an independent auditor
2. Addressee: the report is addressed as required by the circumstances of the engagement
3. Auditor’s Opinion
4. Basis for Opinion
5. Substantial doubt about the entity’s ability to continue as a going concern (when relevant)
6. Key audit maters (when engaged)
7. Responsibilities of management for the financial statements
8. Auditor’s responsibilities for the audit of the financial statements
9. Other information (when relevant)
10. Other reporting responsibilities
11. Signature of the auditor: auditor’s firm
12. Auditor’s address: city and state where the auditor’s report is issued
13. Date of the auditor’s report: no earlier than the date on which the auditor has obtained sufficient appropriate audit evidence

Question 3

what is the term to remember when preparing an unqualified audit report for an issuer?

Answer 3

RAPMEE

• RR: management’s Responsibility and auditor’s Responsibility
• AA: we are public Accounting firm registered with PCAOB. We conducted our Audits in accordance with…
• PP: we Plan and Perform the audit to obtain…
• MM: FS are free of Material Mistatement…our audits ..to assess the risks of Material Misstatement of the FS..
• EE: Such procedures included Examining, on a test basis, Evidence regarding the amounts, …
• EE: our audits also included Evaluating the accounting principles used and significant Estimates made by management…