Audit Reports - Clarified SAS

Question 1

What is Management Responsible for in regards to the Financial Statements?

Answer 1

Preparation and Fair Presentation of Financial Statements in accordance with the Applicable Financial Reporting Framework

Question 2

What is Management Responsible for in regards to Internal Control?

Answer 2

Internal Control Design, Implementation, Maintenance

Question 3

What are the 4 paragraphs in the Audit Report for an Unmodified Opinion?

Answer 3

Introduction
Management’s Responsibility for the F/S
Auditor’s Responsibility
Opinion

Question 4

What are the 5 paragraphs in the Audit Report for an Modified Opinion?

Answer 4

Introduction
Management’s Responsibility for F/S
Auditor’s Responsibility
Basis for (Modified) Opinion
(Modified) Opinion

Question 5

In an Unmodified Opinion with Emphasis-of-Matter / Other-Matter sections, what is the order of the paragraphs?

Answer 5

Introduction
Management’s Responsibility for the F/S
Auditor’s Responsibility
Opinion
Emphasis-of-Matter
Other-Matter