Chapter_18 Audit Reports

Chapter_18 Audit Reports - ACCY 360/560: Assurance Services...

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ACCY 360/560: Assurance Services "Audit Reports" Chapter #18 I. Recall the Standards of Reporting of GAAS (“GCDO”) that affect the auditor’s reporting language II. Standard “unqualified” report (see the sample reports: one in paragraph form & the other by sentences) means that the financial statements are fairly stated, without reservation III. Unqualified, but modified reports means that the financial statements are fairly stated, without reservation (but the auditor deviates from the usual “standard” unqualified report as deemed appropriate, perhaps to emphasize a matter of importance) A. Limited reporting engagement (when engaged to report on 1 basic F/S; e.g., just the B/S) 1. Note that the reference in the fourth reporting standard to the F/S taken as a whole applies to an individual F/S as well as to the complete set of current year’s F/S 2. If reporting on only one F/S – the audit report specifies the F/S involved B. Report based in part on other auditors – to convey a division of responsibility 1. Not required to make reference to other auditors a. Procedures--inquire about the other auditors' professional reputation; and obtain their representation as to independence (may request to b. Reporting--if principal auditor decides to mention other auditors, usually identify proportion of F/S audited by others (usually do not mention other auditors by name) 2. Reference to other auditors affects each paragraph C. Uncertainties (including "going concern") -- when the outcome of F/S-related uncertainties is not susceptible to reasonable estimation, but F/S treatment is apparently in accordance with GAAP D. Unusual circumstances requiring departure from promulgated GAAP --note that there is a strong presumption that following FASB statements, etc., will not make the F/S misleading!
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This note was uploaded on 04/22/2011 for the course ACCY 360 taught by Professor T during the Spring '08 term at Northern Illinois University.

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Chapter_18 Audit Reports - ACCY 360/560: Assurance Services...

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