Audit Reports

Question 1

What are the paragraph names of a standard audit report (nonissuer)?

Answer 1

Report on the F/S (Introductory)
Mgmt’s Responsibility (for the F/S)
Auditor’s Responsibility
Opinion

Question 2

What are the paragraph names of a standard audit report (issuer/PCAOB)?

Answer 2

Introductory
Scope
Opinion
**also I/C para. if not a separate report

Question 3

What are standard Nonissuer audit reports titled? How about Issuer reports?

Answer 3

Independent Auditor’s Report

-VS-

Report of Independent Registered Public Accounting Firm

Question 4

Do Issuer audit reports reference Generally Accepted Audit Standards (GAAS)?

Answer 4

No! Since they issue “public” securities, they refer instead to the standards of the PCAOB.

Question 5

Where is an Emphasis of Matter paragraph located?

Answer 5

Beneath the Opinion paragraph (and above Other Matter, if included)

Question 6

Where is an Other-Matter paragraph located ?

Answer 6

Beneath the Opinion paragraph (and beneath the Emphasis of a Matter paragraph if also included)

Question 7

What items/assertions are implicitly stated in the auditor’s report?

Answer 7

Consistency of accounting principles and no omitted disclosures

Question 8

For what circumstances may either emphasis of a matter or other matter paragraphs be chosen?

Answer 8

When the auditor’s opinion on revised financials differs from the previously expressed opinion.