Unmodified Opinion

Question 1

Structure of Report

Answer 1

Title
Addressee
Body of report
- intro sentence
- management responsibilities
-auditors responsibilities
-Opinion
Signature
City and State
Date

Question 2

Intro Sentence

Answer 2

We have audited the accompanying financial statements of XYZ company, which comprise the balance sheet as of December 31, 20X1 and 20X2, and the related statements of income, changes in stockholders equity, and cash flows for the years ended, and the related notes to the financial statments

Question 3

management responsibilties

paragraph

Answer 3

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Question 4

Auditors Responsibilities (1st paragraph 3 sentences)

Answer 4

1. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
2. We conducted our audits in accordance with auditing standards generally accepted in the United States of America.
3. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

Question 5

Auditors Responsibilities (2nd paragraph 5 sentences)

Answer 5

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements.
5. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.
6. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
7. Accordingly, we express no such opinion.
8. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

Question 6

Auditors Responsibilities (3rd paragraph 1 sentences)

Answer 6

9. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Question 7

Opinion Paragraph

Answer 7

1. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of ABC Company and its subsidiaries as of December 31, 20X1 and 20X0, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.