Scribd Logo
Upload

Welcome to Scribd!

  • Audit Report Important Facts

    Uploaded by

    zenvio
    11 views1 page
    There are certain circumstances where an explanatory paragraph must be included with an auditor's report. These include when there is substantial doubt about an entity's ability to continue as a going concern, when required supplementary information by FASB or GASB is omitted or misstated, or when required quarterly data for public companies is omitted or unable to be reviewed by the auditor. An explanatory paragraph may also be included to emphasize a matter or draw attention to an inconsistency in the financial statements, a change in accounting principle, or an uncertainty. However, an inconsistency alone does not necessarily result in a modified audit opinion.

    Original Description:

    Original Title

    Audit Report important facts

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    There are certain circumstances where an explanatory paragraph must be included with an auditor's report. These include when there is substantial doubt about an entity's ability to continue as a going concern, when required supplementary information by FASB or GASB is omitted or misstated, or when required quarterly data for public companies is omitted or unable to be reviewed by the auditor. An explanatory paragraph may also be included to emphasize a matter or draw attention to an inconsistency in the financial statements, a change in accounting principle, or an uncertainty. However, an inconsistency alone does not necessarily result in a modified audit opinion.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    11 views1 page

    Audit Report Important Facts

    Uploaded by

    zenvio
    There are certain circumstances where an explanatory paragraph must be included with an auditor's report. These include when there is substantial doubt about an entity's ability to continue as a going concern, when required supplementary information by FASB or GASB is omitted or misstated, or when required quarterly data for public companies is omitted or unable to be reviewed by the auditor. An explanatory paragraph may also be included to emphasize a matter or draw attention to an inconsistency in the financial statements, a change in accounting principle, or an uncertainty. However, an inconsistency alone does not necessarily result in a modified audit opinion.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    I n addition to the circumstances just discussed, in which the inclusion of an explanatory paragraph is optional, there are some circumstances

    in which the inclusion of such a paragraph is mandatory. Examples are: Substantial doubt as to the ability of the client to continue as a going concern. Omission, misstatement, or auditor inability to review supplementary information required by the FASB or GASB. Omission, misstatement, or auditor inability to review required quarterly data for companies reporting in connection with the Securities Exchange Act of 1934.
    o Emphasis of a matter (Unqualified) May add explanatory if auditor considers necessary: Justifiable departure from GAAP Misleading Lack of consistency Concur Uncertainty Contingent liability Uncertainty - Going concern issue Division of responsibility Incorrect or inadequate supplementary information Info required by FASB or GASB is omitted Not to refer to specialist unless report modified due to

    specialist findings Emphasis of a matter An inconsistency is not necessarily a departure from GAAP. As long as the auditor concurs with the change and it is accounted for and disclosed properly, the audit opinion will continue to be unqualified (as in all of the examples so far in this module).

    You might also like