《审计资料--审计报告及内容(PPT 55页)》由会员分享,可在线阅读,更多相关《审计资料--审计报告及内容(PPT 55页)(55页珍藏版)》请在金锄头文库上搜索。
1、Audit ReportsChapter 3Association with F/SAuditors 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 auditors letterheadProduced by accountants computerF/S state that they are the auditors.
2、Levels of AssurancePositive 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.A
3、ssurance F/S AuditsAn 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:UnqualifiedQualifiedAdverseNegative AssuranceNegative assurance is a statement that the audit
4、or is not aware of any material departures from GAAP To weak of a conclusion for an auditUsed in reviews, letters to underwriters and reviews of interim financial statements.Parts of the StandardUnqualified Audit Report1. Report title2. Audit report address3. Introductory paragraph4. Scope paragraph
5、5. Opinion paragraph6. Name of CPA firm7. Audit report dateConditions for StandardUnqualified Audit Report1. All financial statements are included.2. The three general standards have beenfollowed in all respects on the engagement.3. Sufficient evidence has been accumulatedto conclude that the three
6、standards offield work have been met.Conditions for StandardUnqualified Audit Report4. The financial statements are presented inaccordance with generally acceptedaccounting principles.5. There are no circumstances requiring theaddition of an explanatory paragraph ormodification of the wording of the
7、 report.Four Categoriesof Audit ReportsStandard unqualifiedUnqualified withexplanatory paragraphor modified wordingQualifiedAdverse or disclaimerComponents of Auditors ReportThree paragraphsIntroductoryScopeOpinionIntroductory ParagraphDefines association, object and responsibilities of serviceWe ha
8、ve 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 resp
9、onsibility is to express an opinion on these financial statements based on our audits.Object of AuditThe Balance SheetIncome statementCash Flow StatementFootnote disclosures and additional information like EPS The supporting records are not the object of the audit.Scope ParagraphDefines what an audi
10、t is.We conducted our audits in accordance with GAAS. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Scope Paragraph Cont.An audit includes examining, on a test basis, evidence suppor
11、ting 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 our audits provide a reasonable basis for our opi
12、nion.Audited according to GAAS Means that the general and field work standards of quality were adhered to in conducting this audit.The reporting standards are guidelines for the report expression.Opinion ParagraphContains the auditors conclusionIn our opinion, the financial statements referred to ab
13、ove present fairly, in all material respects, the financial position of XYZ corp. as of December 31, 2001 and 2000 and the results of their operations and cash flows for each of the three years in the period ended December 31, 2001, in conformity with U.S. GAAP.Reporting StandardsF/S are in conformi
14、ty with GAAPIdentifies any changes in consistencyIdentifies any inadequate disclosures.Express an opinion and identifies any reasons for opinions other than unqualifiedAuditors Assurance of GAAPFinancial Statements are:In accordance with GAAPAccounting principles are appropriate for circumstancesInf
15、ormative for their usethe classifications are neither to condensed or too detailedAccurate within practical limits of materialityAdequately disclosed and consistentTypes of ReportsUnqualified or clean - no problems, everything was audited and conformed to GAAP. Unqualified with an explanatory paragr
16、aphQualified - everything OK except for a specific item or items.Adverse - not in conformity with GAAPDisclaimer - No opinionUnqualified Reportwith Explanation1. Lack of consistent application of generallyaccepted accounting principles.2. Substantial doubt about going concern.3. Auditor agrees with a departure from promulgated accounting principles.4. Emphasis of a matter.5. Reports involving other auditors.Consistency versusComparabilityChanges that affect consistency and requirean explanatory