Audit Report.ppt

Modifications of the Auditors’ Report--Unqualified Opinions Modifications of Auditors’ Report—Adverse Opinions and Disclaimers Reporting on Comparative Financial Statements Report should cover current year as well as prior period audited by their firm. Can express different opinions on different years Auditor should update report for all prior periods presented for comparison If prior period audited by another (predecessor) CPA firm Current year opinion only covers years the CPA firm audited For financial statements audited by predecessor auditors either: Predecessor auditor reissues report with original date or Current auditors refer to report of other auditors Reports to SEC Forms filed with SEC which include audited financial statements Forms S-1 through S-11 (registration statements) Forms SB-1 and SB-2 (registration for small businesses) Form 8-K (current report) Form 10-Q (quarterly report) Form 19-K (annual report) Auditors should be well versed on requirements of each form 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5 10 10 10 10 11 11 11 11 14 14 14 14 15 15 15 15 16 16 16 16 12 12 12 12 17 17 17 17 17-* Auditors’ Reports Chapter 17 McGraw-Hill/Irwin Copyright ? 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Audit Report Providing an independent and expert opinion on the fairness of financial statements through an audit is the most frequent attestation service An audit provides users of financial statements reasonable assurance that the statements are in conformity with GAAP Fourth Standard of Reporting Fourth Standard of Reporting: The auditor must either express an opinion regarding the financial statements, taken as a whole, or state that an opinion cannot be expressed, in the auditors report. When the auditor cannot express an overall opinion, the auditor should state the reasons therefore in the auditors report. In all cases where an auditors name is associated with financial statements, the auditor should clearly indicate the character of the a