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Unformatted text preview: BUS 129A “Insights” Insight 1 : Unqualified audit report: Check by reading opinion paragraph (no “except for” disclaimer, or adverse terms). Insight 2a Auditors sometimes add explanatory language to what remains an unqualified report: Required Going concern Consistency (not) Justified departure from GAAP Incorrect additional unaudited information Not required (auditor decides) Other auditors Emphasis of a matter Insight 2b: Explanatory language Almost always Exception: Other additional paragraph(s) auditors (modify existing paragraphs, no additional paragraph). Insight 3: GAAP Departures: Unjustified Standard Unqualified Qualified Adverse Scope Limitations Standard Unqualified Qualified Disclaimer Insight 4: Reporting on "Other Information" with Audited Financial Information Must it be audited When is it reported on? Auditor Submitted Document No Always Client Prepared Document No When it's wrong Insight 5: Audit risk is the risk that an auditor fails to qualify his/her opinion on financial statements that are...
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This note was uploaded on 09/08/2010 for the course BUS 129A at San Jose State.