Audit Reports

Auditor must adhere to 4 standards of reporting

1) Conformity with U.S. GAAP
2) Identify inconsistencies from prior period (consistency implied if not mentioned in report)
3) Indicate if not adequate disclosure (adequacy of disclosure implied if not mentioned in re-
port)
4) Express opinion or indicate why not & indicate degree of responsibility taken

5)
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Reporting - Module 4

Standard Report-An Unqualified Opinion

When the auditor has gathered sufficient competent evidential matter to corroborate manage-
ment's assertions, an unqualified opinion is expressed in a standard report
The title of the report will indicate that the auditor is independent
·1 The report is addressed to the whoever hired the auditor, may be directors, the share-
holders, a third party requesting the audit, or, in public companies, the audit committee
An introductory paragraph will discuss the nature of the engagement
·2 A scope paragraph will describe the work performed
An opinion paragraph will provide appropriate assurances
The report is signed by the auditor
The report is dated as of the completion of fieldwork

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