Report Flashcards
Introductory Paragraph (1)
We audited the F/S of XYZ co - (what statements were they and for what dates/periods)
Management’s Responsibilities Paragraph (2)
Responsible for fair presentation and preparation of F/S in accordance with GAAP free from MM. Also responsible for I/C.
Auditor’s Responsibility Paragraph (1)
- Express Opinion
- Conduct audits per GAAS
- Plan and perform audit to obtain reasonable assurance F/S free from MM
Auditor’s Responsibility Paragraph (2) Scope
- Audit procedures to obtain evidence
- Procedurers based on judgement and risk of MM
- Consideres I/C for purposes of expressing opinion about F/S not I/C
- No opinion on I//c
- Evaluate accounting principals & reasonableness of estimates
Auditor’s Responsibility Paragraph (3)
- Opinion
Emphasis of matter
Paragraph explaining something that is important to understanding of F/S in auditor report
Other matter
Paragraph about something not in F/S that is important to audit report
Qualified opinion types
Qualified
Adverse
Disclaimer
Add basis for qualification paragraph to report
Qualified reasons
Something not fairly stated or scope limit
Adverse reasons
F/S not fairly stated - misstatements pervasive and material
Disclaimer
not able to obtain sufficient reasonable evidence which could be material & pervasive
Changes to report with “disclaimer”
Modify report Auditor Responsibility section - no opinion
Consistency
Comparability between periods - affected by:
- Change in Accting principal
- Adj to correct previous MM
Criteria for Change in Accting Principal
- New principal appropriate to framework
- Effects accounted for
- Disclosure adequate
- Justifiable reason for change
Yes = emphasis of matter paragraph
