Ch 17 Auditors Reports

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Ch 17 Auditors Reports
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Ch 2 Review-- GAAS--Standards of Reporting

• State whether the F/S are presented in accordance
  with GAAP
• Identify circumstances where principles have not
  been consistently applied
• Informative disclosures are adequate unless
  otherwise stated in the report
• Report should clearly state the degree of
  responsibility being assumed the auditor

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The Standard Auditors Report--Overview

• F/S Notes are managements responsibility
• Auditors responsibility is to report results of
  the auditors audit in their report

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The Standard Auditors Report--Format

• Title
• AddresseeAudit Committee BOD, S/H, etc.
• Content
• Introductory paragraph
• Scope paragraph
• Opinion paragraph
• Signature
• Office
• Date

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Non-Public Companies Auditors Report (AICPA)

• Independent Auditors Report
• To the Board of Directors and Stockholders, XYZ
  Company
• We have audited the accompanying balance sheet
  of XYZ Company as of December 31, 20XX and
  related statements of income, retained earnings,
  and cash flows for the year then ended. These
  financial statements are the responsibility of
  the Companys management. Our responsibility is
  to express an opinion on these financial
  statements based on our audit.
• We conducted our audit in accordance with
  auditing standards generally accepted in the
  United States of America. Those standards
  require that we plan and perform the audit to
  obtain reasonable assurance about whether the
  financial statements are free of material
  misstatement. An audit includes examining, on a
  test basis, evidence supporting the amounts and
  disclosures in the financial statements. An
  audit also includes assessing the accounting
  principles used and significant estimates made by
  management, as well as evaluating the overall
  financial statement presentation. We believe
  that our audit provides a reasonable basis for
  our opinion.
• In our opinion, the financial statements
  referred to above present fairly, in all material
  respects, the financial position of XYZ Company
  as of December 31, 20XX, and the results of its
  operations and its cash flows for the year then
  ended in conformity with accounting principles
  generally accepted in the United States of
  America.
• Los Angeles, California
• Blue Gray and Company
• Certified Public Accountants
• February 26, 20XY

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Public Companies Auditors Report (PCAOB)

• Report of Independent Registered Public
  Accounting Firm
• To the Board of Directors and Stockholders, XYZ
  Company
• We have audited the accompanying balance sheet
  of XYZ Company as of December 31, 20XX and
  related statements of income, retained earnings,
  and cash flows for the year then ended. These
  financial statements are the responsibility of
  the Companys management. Our responsibility is
  to express an opinion on these financial
  statements based on our audit.
• We conducted our audit in accordance with
  standards of the Public Company Accounting
  Oversight Board (United States) Those standards
  require that we plan and perform the audit to
  obtain reasonable assurance about whether the
  financial statements are free of material
  misstatement. An audit includes examining, on a
  test basis, evidence supporting the amounts and
  disclosures in the financial statements. An
  audit also includes assessing the accounting
  principles used and significant estimates made by
  management, as well as evaluating the overall
  financial statement presentation. We believe
  that our audit provides a reasonable basis for
  our opinion.
• In our opinion, the financial statements
  referred to above present fairly, in all material
  respects, the financial position of XYZ Company
  as of December 31, 20XX, and the results of its
  operations and its cash flows for the year then
  ended in conformity with accounting principles
  generally accepted in the United States of
  America.
• We have also audited, in accordance with the
  standards of the Public Company Accounting
  Oversight Board (United States), the
  effectiveness of XYZ Companys internal control
  over financial reporting as of December 31, 20XX,
  based on Internal ControlIntegrated Framework
  issued by the Committee of Sponsoring
  Organizations of the Treadway Commission (COSO)
  and our report dated February 26, 20XX, expressed
  an unqualified opinion thereon.
• Los Angeles, California
• Blue Gray and Company
• Certified Public Accountants
• February 26, 20XY

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Conditions Required for Issuance of an
Unqualified Report No qualification

• The financial statements are presented in
  conformity with GAAP, including adequate
  disclosures.
• The audit was performed in accordance with
  (Auditing Standards of the PCAOB) GAAS, and there
  were no significant scope limitations.

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Types of Audit Reports

• Standard unqualified opinion
• With explanatory language
• Qualified opinion
• Adverse opinion
• Disclaimer

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