Chart for Audit Reports

Question 1

Disagreement

Answer 1

Not GAAP (PCAOB), or not AFRF (non-public) , Inconsistency, Inadequate Disclosures

Question 2

Disagreement - Immaterial

Answer 2

Unqualified (PCAOB) Unmodified (AICPA)

Question 3

Disagreement - Material (Not Pervasive)

Answer 3

Modified (Qualified) Misstatements are material, but not pervasive “Except For”- Basis for Qualified

Question 4

Disagreement- Very Material (Pervasive)

Answer 4

Modified - both material and pervasive, or adverse (basis for adverse)

Question 5

Scope Limitation - immaterial

Answer 5

unmodified, unqualified

Question 6

Scope Limitation - Material (not Pervasive)

Answer 6

Modified (unable to obtain sufficient appropriate audit evidence), except for - basis for qualified

Question 7

Scope Limitation- Material (pervasive)

Answer 7

Modified (material and pervasive), Disclaimer (basis for disclaimer)

Question 8

Emphasis of Matter or Other Matter (Uncertainty)

Answer 8

Contingent Liability, Going concern doubt,

Question 9

Emphasis of Matter or Other Matter (Uncertainty)- Immaterial

Answer 9

Unmodified, Unqaulified

Question 10

Emphasis of Matter or Other Matter (Uncertainty)- Immaterial - Material and Highly Material

Answer 10

Unmodified with Emphasis of Matter - Other Matter

Question 11

Emphasis of Matter

Answer 11

properly presented and disclosed, after opinion

Question 12

Other Matter

Answer 12

Not required to be presented or disclosed, after emphasis on opinion