Sample Standard Report

Question 1

Auditor’s report - Standard intro paragraph

Answer 1

We have audited the accompanying balance sheet of X Company as of Month DD, YYYY, and the related statements of income, retained earnings, and cash flows for the year 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 audit.

Question 2

Auditor’s report - Standard scope paragraph

Answer 2

We conducted our audit in accordance with U.S. 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 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 audit provides a reasonable basis for our opinion.

Question 3

Auditor’s report - Standard opinion paragraph

Answer 3

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of X Company as of Month DD, YYYY and the results of its operations and its cash flows for the year then ended in conformity with U.S. Generally Accepted Accounting Principles.