Chapter 3 standard unmodified opinion audit report for nonpublic entities

Question 1

what are the requirements of the 3 paragraphs in the auditors responibility of report?

Answer 1

first- that auditors responsibility is to provide an opinion on FSs, the audit done in accordance with GAAS, and audit is designed to obtain reasonable assurance whether statements are free of material misstatement second- describes scope of audit and the evidence accumulated about amounts and disclosures in FSs. considers internal control relevant but not suffeccitic to express an opinion about. do appropriatiness of accounting policies select, reasonalbleness of estimates, and overll finanicla presentation third- believe sufficient appropriate evidence as been obtained to support opinion

Question 2

in the managements respoonsiblility section of the report what must the heading be?

Answer 2

Management’ Responsibility for the FSs

Question 3

who is the audit report typically addressed to?

Answer 3

shareholders and board of directors

Question 4

what is in the intro paragraph?

Answer 4

1. that they have performed an audit 2. list the financial statements audited including the notes to FSs 3. list dates of B/S and accounting periods covered in I/S and cash flows

Question 5

in the paragraph describing managments responsibility for the financial statements…what does this responsibility include? (2)

Answer 5

1. selecting appropriate accounting principals 2. maintaining internal control over financial reporting enough for prep of the FSs that are free of material misstakements due to fraud or error

Question 6

the wording of the FSs in the report should be identical to what?

Answer 6

the titles management used on the FSs

Question 7

what are the 8 parts of the standard unmodified opinion audit report?

Answer 7

1. report title 2. audit report address 3. intro paragraph 4. managements responsiblity 5. auditors responsiblity 6. opinion paragraph 7. signature and address of cpa firm 8. audit report date

Question 8

the report title must contrain the word?

Answer 8

independent

Question 9

auditors responsibility section must have what heading?

Answer 9

auditors responsibility

Question 10

what does opinion piece of report contain?

Answer 10

in our opinion, FSs are presented fairly in all material respects. the date . mention accordance with GAAP

Question 11

when is the appropriate audit report date?

Answer 11

the date on which the auditor completed the auditing procedures needed to obtain sufficent appropratie audit evidence