AuditReports(英文版)(ppt55页)课件.ppt

Audit Reports Chapter 3 Association with F/S Auditors have to issue a report when associated with F/S showing: What services, if any, were performed. Level of responsibility, if any. Association occurs when: F/S are on auditor’s letterhead Produced by accountant’s computer F/S state that they are the auditors. Levels of Assurance Positive assurance - factual statement of auditors opinion; F/S are GAAP. Used for F/S audits. Negative Assurance - based on our review, we are not aware of any material modifications. Used for reviews. No assurance - disclaimer of opinion, no opinion at all. Used for compilations. Assurance F/S Audits An auditors opinion on financial statements is an explicit statement of the auditors conclusion. All reports except disclaimer are positive assurance. Examples of positive assurance reports: Unqualified Qualified Adverse Negative Assurance Negative assurance is a statement that the auditor is not aware of any material departures from GAAP To weak of a conclusion for an audit Used in reviews, letters to underwriters and reviews of interim financial statements. Parts of the StandardUnqualified Audit Report Conditions for StandardUnqualified Audit Report Conditions for StandardUnqualified Audit Report Four Categoriesof Audit Reports Components of Auditors’ Report Three paragraphs Introductory Scope Opinion Introductory Paragraph Defines association, object and responsibilities of service We have audited the accompanying consolidated balance sheets of XYZ Corp as of December 31, 2001 and 2000 and the related statements of income, cash flows and shareholders’ equity for each of the three years in the period ending 2001. The financial statements are the responsibility of management. Our responsibility is to express an opinion on these financial statements based on our audits. Object of Audit The Balance Sheet Income statement Cash Flow Statement Footnote disclosures and additional information like EPS The supporting records are not the obje