Audit Reports- Non Public

Question 1

1 - Report Title

Answer 1

must include word independent- unbiased in all aspects

Question 2

2 - Report Address

Answer 2

usually addressed to company, stockholders and board of directors. Recently took out company to show independence

Question 3

3 - Introductory Paragraph

Answer 3

1st paragraph- indicates CPA firm has conducted audit and lists financial statements that were audited including notes and balance sheet dates and time periods for income statement and SOCF

Question 4

4 - MGMT Responsibility

Answer 4

states that the statements fair representation (design, implementation and maintenance of internal control) are MGMT responsibility

Question 5

5 - Auditor’s Responsibility- 3 paragraphs

Answer 5

1st Paragraph - states that audit was conducted in accordance with generally accepted auditing standards in the US, also notes that the audit is designed to obtain reasonable assurance that F/S are free of material misstatement 2nd Paragraph- Scope of Audit, indicated procedures depend on auditor’s judgement and include an assessment of material misstatement in the financial statements, defines auditing, 3rd Paragraph- indicates that the auditor believes that sufficient appropriate evidence has been obtained to support the auditor’s opinion

Question 6

6 - Opinion Paragraph

Answer 6

** VERY IMPORTANT PARAGRAPH* states auditor’s conclusions based on results of audit

Question 7

7 - Name and Address of CPA Firm

Answer 7

city and state should also be indicated

Question 8

8- Audit Report Date

Answer 8

date field work was completed