Audit Reports

Question 1

Format of Unmodified (Nonissuer) AICPA

Answer 1

4 Sections:
Title “Indep Aud Report”
To:
1. Report on the F/S or Intro - Comprised of/Periods

2. Mgt Resp: MR DIM
   MANAGEMENT
   RESPONSIBLEDESIGN
   IMPLEMENTATION
   MAINTENANCE
3. Aud Resp REPPORTS CRAME: auditors responsibility
   RESPONSIBILITY
   EXPRESS an opinion
   PLAN and perform the audit

PERFORM procedures to
OBTAIN audit evidence
assess RISKS of material misstatements
TESTS ic relevant to entity's prep and fair pres. of fin.
STATEMENTS

not to express opinion on effectiveness of internal
CONTROL
evaluate the appropriateness of REASONABLENESS of
ACCOUNTING estimates made by
MANAGEMENT &
EVALUATING the overall presentation of the f/s

4. Opinion
Done, if needed: 
Emphasis Paragraph
Other matter paragraph
Restricted Use Statement

Question 2

Format of Unqualified (Issuer) PCAOB

Answer 2

2 Sections

Title: Report of Indep Registered Public Acct Firm
To: S/H and Board of Dir
1. Opinion on the F/S: Name, F/S covered, periods, actual fairly opinion, applicable framework like GAAP
2. Basis for Opinion RAPMEE RAPMEE
f/s are RESPONSIBILITY of company’s mgmt and
auditor’s RESPONSIBILITY is to express an opinion

AUDIT conducted in
ACCORDANCE with PCAOB standards

PLAN
PERFORM the audit to obtain reasonable assurance

MATERIAL
MISSTATEMENTS due to error or fraud

EXAMINE
EVIDENCE

EVALUATING the accounting principles used
and significant ESTIMATES
-Critical Audit Matters, if needed
-Signature
-Tenure
-City, State
-Date

Question 3

Qualified Report: Nonissuer

Answer 3

Sections 1 & 2 stay the same:

1. Report on the Financial Statements
2. Mgt Resp

Change:
Section 3: A/R: You modify the last paragraph: “We believe that the …to provide a basis for the qualified audit report.

ADD Section: “Basis for Qualified Opinion Paragraph”
(Before the Opinion Paragraph)

4. Change Title of Opinion Section to “Qualified Opinion” add the words “except for”
   Auditor Sig
   City, ST
   DATE

Question 4

Adverse Report: Nonissuer

Answer 4

Sections 1 & 2 stay the same

1. Intro Paragraph
2. MgT Resp

CHANGE
2. Auditor’s Resp:
final statement “We believe that the audit evidence we have obtained is suff/approp to….BASIS FOR our ADVERSE AUDIT OPINION.

3. ADD Section “BASIS for ADVERSE Opinion”
4. CHANGE Title : ADVERSE Opinion

Aud Sig
City, St
Date

Question 5

Qualified Opinion: Issuer

Answer 5

Section 1: Opinion on the F/S
What you audited, period= same
Next sentence add “except for…” and reference to the paragraph that discusses information
Next Paragraph: Information Discussed

Section 2: Basis for Opinion Section: no change

Question 6

Adverse Opinion: Issuer

Answer 6

Section 1: Opinion on the F/S
What audited, periods
Next Sentence: In our opinion, BECAUSE of the effects DO NOT PRESENT FAIRLY….”

Next Paragraph: Describe Note "as discussed in note x"
2. Basis for Opinion
Sig
Tenure
City, ST
Date