Examination Reports

Question 1

T/F: The AICPA does not give a standardized format for the examination report?

Answer 1

TRUE- but they have elements that should be included

Question 2

What are the required elements?

Answer 2

1) Title with the word “independent”
2) Appropriate addressee
3) Subject Matter
4) Identify the criteria for the subject matter
5) Identify the responsible party and responsibility to express an opinion
6) Statement that examination was conducted in accordance with AICPA standards, that the standards require engagement to obtain reasonable assurance and evidence obtained was reasonable to determine opinion
7) Nature of engagement
8) inherent limitations on the engagement
9) Opinion on the subject matter is in accordance
10) Signature block
11) City and State
12) . Date of the report

Question 3

When would you add a restricted use paragraph?

Answer 3

1) Report should be limited to certain parties
2) Criteria used are available only to specified parties
3) Responsible party may not be the engaging party does not provide written representation but does provide oral responses

Question 4

T/F: You should refer to a specialist when issuing a unmodified opinion?

Answer 4

FALSE- do not reference them in a unmodified opinion