美国审计学 auditing 14e course PPT 3.ppt

* * The auditor must be satisfied and must state and explain, in a separate paragraph or paragraphs in the audit report, that adhering to the principle would have produced a misleading result in that situation. * Significant related party transactions Material subsequent events Accounting matters affecting comparability of the financial statements Material uncertainties disclosed in the footnotes * A shared unqualified report is appropriate when it is impractical to review the work of the other auditor or when the portion of the financial statements audited by the other CPA is material in relation to the whole. * * * Scope limitations are when the auditor has not accumulated sufficient appropriate evidence to conclude whether the financial statements are stated in accordance with GAAP. Client insists on using a method that is not consistent with GAAP. Independence ordinarily is determined by Rule 101 of the rules of the Code of Professional Conduct. * A qualified report can take the form of a qualification of both the scope and the opinion or of the opinion alone. * * It is used only when the auditor believes that the overall financial statements are so materially misstated or misleading that they do not present fairly the financial position or results of operations and cash flows in conformity with GAAP. * * The necessity for disclaiming an opinion may arise because of a severe limitation on the scope of the audit or a nonindependent relationship under the Code of Professional Conduct between the auditor and the client. * * * Materiality is an essential consideration in determining the appropriate type of report for a given set of circumstances. * Immaterial is when a misstatement in the financial statements is unlikely to affect the decisions of a reasonable user. A misstatement in the financial statements would affect a user’s decision, but the overall statements are still fairly stated and therefore useful. The highest level of materiality exists whe