Chap012 - Chapter 12 - Reports on Audited Financial...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 12 - Reports on Audited Financial Statements CHAPTER 12 Reports on Audited Financial Statements LEARNING OBJECTIVES Review Checkpoints Exercises, Problems, and Simulations 1. Provide an overview of the types of reports that accompany the entitys financial statements. 1, 2 2. List three general functions of the auditors report on an entitys financial statements. 3 3. Explain the significance of each of the paragraphs in a standard report on an entitys financial statements. 4, 5, 6, 7 38, 49, 50 4. Describe the types of auditors reports that may be issued if an entitys financial statements contain a departure from generally accepted accounting principles. 8, 9 40, 44 (partial), 46 (partial), 48 (partial), 56, 57 (partial), 59 (partial), 60 (partial), 5. Describe the types of auditors reports that may be issued if auditors are unable to comply with generally accepted auditing standards. 10, 11 44 (partial), 46 (partial), 48 (partial), 53, 60 (partial) 6. Describe how the standard report is modified when auditors issue unqualified opinions but reference other matters affecting the audit or the client. 12, 13, 14, 15, 16, 17, 18 39, 42, 43, 44 (partial), 46 (partial), 47, 51, 54, 57 (partial), 58, 59 (partial), 60 (partial) 7. Identify other circumstances affecting auditors reporting responsibilities and explain how they affect auditors reports on an entitys financial statements. 19, 20, 21, 22, 23, 24 41, 44 (partial), 45, 52, 55, 60 (partial), 61, 62 12-1 Chapter 12 - Reports on Audited Financial Statements SOLUTIONS FOR REVIEW CHECKPOINTS 12.1 Management prepares a report on the effectiveness of internal control over financial reporting. The auditors prepare reports on (1) the entitys financial statement and other disclosures and (2) the effectiveness of the entitys internal control over financial reporting. These can be presented as two separate reports or a combined report. 12.2 Managements report on internal control over financial reporting consists of the following major components: A statement indicating that management is responsible for establishing and maintaining adequate internal control over financial reporting. A statement identifying the framework used by management to assess the effectiveness of the entitys internal control. Managements opinion on the effectiveness of the entitys internal control, including an explicit statement as to whether the internal control over financial reporting is effective. A statement that the registered accounting firm auditing the financial statements (auditor) has issued an attestation report on the entitys internal control over financial reporting....
View Full Document

This note was uploaded on 01/21/2010 for the course ACC 492 ACC 492 taught by Professor Benmathews during the Spring '09 term at University of Phoenix.

Page1 / 30

Chap012 - Chapter 12 - Reports on Audited Financial...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online