3724461980 - CHAPTER 17 Auditors Reports Review Questions 17-1 17-5 The three paragraphs of the standard audit report for a nonpublic company are(1

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CHAPTER 17 Auditors' Reports Review Questions 17-1 The three paragraphs of the standard audit report for a nonpublic company are (1) introductory paragraph, (2) scope paragraph, and (3) opinion paragraph. 17-5 (1) Unqualified opinion—standard report . This report represents a "clean bill of health" and may be issued when there are no material departures from generally accepted accounting principles, no significant scope limitations preventing the gathering of necessary evidence, and when no conditions requiring explanatory language exist. (2) Unqualified opinion—with explanatory language added to report . This is an audit report with an unqualified opinion, but with circumstances that result in the auditors adding certain explanatory language to the report. Examples of such circumstances are those in which other auditors have performed a portion of the audit, or when a question concerning an entity’s ability to continue as a going concern exist. (3) Qualified opinion . A qualified opinion is issued when the auditors' examination is restricted as to its scope or the financial statements depart from generally accepted accounting principles. A qualified opinion is still a positive opinion; it asserts that the presentation in the financial statements, viewed as a whole, is fair. (4) Adverse opinion . This is a negative opinion, asserting that the financial statements are not a fair presentation. It is issued when the auditors' exceptions to the presentation in the financial statements are so significant that a qualified opinion
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This note was uploaded on 11/19/2010 for the course ACCOUNTING Auditing taught by Professor G during the Spring '10 term at Oakton.

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3724461980 - CHAPTER 17 Auditors Reports Review Questions 17-1 17-5 The three paragraphs of the standard audit report for a nonpublic company are(1

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