Hurst 1 Chandler Hurst Dr. Eric Condie MGT 4041 3 December 2018 Audit Extra Credit Essay Auditor’s Report Description Auditors issue an unqualified report after they gather sufficient evidence and conduct the audit according to generally accepted auditing standards using financial statements provided by the client and in accordance with GAAP. An unqualified report for a private company follows a standard format. It includes elements as laid out by the PCAOB AS 3101. The Report Title is as it states, it’s simply the heading for the report. The title’s only requirement is that it must include the word independent somewhere in it. The Addressee identifies the people who will receive the report. So, for example, the stockholders of the company being audited. The Scope paragrap h contains the nature of the audit, covering the standards in use and the fact that you sampled and tested the records instead of covering all of them. It also notes that your audit included an assessment of management’s accounting policies and any significant estimates management made. The Opinion paragraph contains your assessment that the financial statements are presented fairly in all material respects. The explanatory paragraph is an extra paragraph that can be included to address the audit of the company’s internal audit controls in place. The name of the auditor that appears at the bottom of the report is the name of the CPA firm conducting the audit, not the name of the individual auditor and also includes the auditor’s tenure. The Date is typically printed as the date you believe that you have sufficient evidence to support your audit opinion.
Hurst 2 Changes Related to Reporting Critical Audit Matters
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- Auditor's report, name of the auditor