Memorize Constantly

Question 0

Recite the scope paragraph of an unqualified report.

Answer 0

We conducted our audits in accordance with US generally accepted auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion.

Question 1

Recite what a typical unqualified report introductory paragraph would say for X Company for 20X2 and 20X1?

Answer 1

We have audited the accompanying balance sheets of X Company as of December 31, 20X2 and 20X1, and the related statements of income, retained earnings, and cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

Question 2

Recite the typical opinion paragraph in an unqualified report for X company in 20X2 and 20X1

Answer 2

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial positions of X Company as of December 31, 20X2 and 20X1, and the results of operations and its cash flows for the years then ended in conformity with US generally accepted accounting principles.