finalauditing - StandardsofReporting 1.

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Standards of Reporting 1. The report shall state whether the financial statements are presented in accordance  with generally accepted accounting principles (GAAP). 2. The report shall identify those circumstances in which such principles have not been  consistently observed in the current period in relation to the preceding period. 3. Informative disclosures in the financial statements are to be regarded as reasonably  adequate unless otherwise stated in the report. 4. The report shall contain either an expression of opinion regarding the financial  statements, taken as a whole, or an assertion to the effect that an opinion cannot be  expressed. When an overall opinion cannot be expressed, the reasons therefor should  be stated. In all cases where an auditor’s name is associated with financial  statements, the report should contain a clear-cut indication of the character of the  auditor’s work, if any, and the degree of responsibility the auditor is taking. 2 Quality control is related but different from GAAS. Each firm establishes their own  organizational structure and procedures, but must be very close to the generally accepted auditing  standards. These quality control procedures provide reasonable assurance, not a guarantee. Each  firm must document its quality control and procedures. These procedures are based on the firms size  and number of firms officers.  As per the book quality control standards are standards applicable to  a CPA firm to aid in satisfying generally accepted auditing standards.  3 1. In our opinion the audit manager is not covered member under rule 101. The audit manager is  not independent, due to him owing stock in the company he is auditing. 
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This note was uploaded on 10/28/2011 for the course AUDIT audit taught by Professor Unknown during the Spring '11 term at Keller Graduate School of Management.

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finalauditing - StandardsofReporting 1.

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