L20 Notes_Part_18 - an opinion on them. Chapter 15 - P5:...

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Chapter 15 - P5: Audit Reports For each of the following situations that require an audit report other than the standard, unqualified one: (1) determine what type of audit report is called for, (2) state where in the audit report changes would have to be made and (3) make the changes. Be specific. a. The accountant merely compiles the financial statements based on management’s representations. No audit work is performed at all. a. A disclaimer report with the following inserted in the scope/opinion paragraph: The accompanying financial statements for THE CLIENT as of THE DATE were not audited by us. Consequently, we do not express
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Unformatted text preview: an opinion on them. Chapter 15 - P5: Audit Reports b. The auditor has no reason to believe that the financial statements are prepared differently from GAAP but wants to call attention to managements continuing relationship with a company whose management substantially overlaps with the clients. b. An unqualified report with the following emphasis of a matter explanatory paragraph added to the audit report: As indicated in the footnotes to the financial statements, THE CLIENT has a relationship with THE OTHER FIRM that would be characterized as a related party for financial reporting purposes ....
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L20 Notes_Part_18 - an opinion on them. Chapter 15 - P5:...

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