Chap013-LN

Chap013-LN - Chapter 13: Audit Reports CHAPTER 13 Audit...

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Chapter 13: Audit Reports CHAPTER 13 Audit Reports After studying this chapter, you should be able to: 1. Explain the auditing standards for reporting. 2. Describe the process of forming an opinion and reporting on financial statements. 3. Explain when an emphasis of matter or other matter paragraph is added to an unqualified audit report. 4. Describe modifications to the opinion in the independent auditors' report when (a) a qualified opinion, (b) a disclaimer of opinion, or (c) an adverse opinion is appropriate. 5. Identify auditors' reporting responsibilities and how they affect audit reports. 6. Describe auditors' responsibilities for reporting on financial statements prepared in accordance with a financial reporting framework generally accepted in another country. 7. Explain what auditor's report on internal control over financial reporting is. 8. Describe situations in which auditors modify the report on internal control over financial reporting. Chapter 13: Audit Reports Chapter Highlights This chapter provides thorough coverage of audit reporting including the standards for audit reports for Public and Private companies; the process the auditor uses to formulate an audit opinion and the different types of audit opinions and the reasons for issuing each of these opinions. Once the different audit reports have been presented, the chapter provides some working examples of audit reports with ‘edits’ to illustrate the report modifications necessary to vary the standard unqualified report to the other modified types of reports (Exhibits 13 -6, 7, and 8). The chapter also includes sections on the auditor’s reporting responsibilities for reporting on financial statements prepared in accordance with a financial reporting framework generally accepted in another country and for reports on internal control. There are examples of actual audit reports from General Mills, Inc. in Exhibit 13-10 and 13-11 which present the report of the “Independent Registered Public Accounting Firm on the Consolidated Financial Statements and Related Financial Statement Schedule for General Mills” and the report of the “Independent Registered Public Accounting Firm Regarding Internal Control over Financial Reporting,” respectively. Additionally, an integrated audit report is presented for Dell, Inc. in Exhibit 13-12. Chapter Outline 1. Audit Reports (Slide #1… see companion slides) The final stage of the audit is the issuing of the audit report. During this important time, auditors review the evidence collected and, based on the evidence, determine the audit opinion to issue. The SEC requires audited financial statements for public companies to be filed within 60 days after year- end and this includes two reports The first one states whether the financial statements have been prepared in accordance with the applicable financial reporting framework, and The second report evaluates the effectiveness of internal control over the financial reporting process
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This note was uploaded on 12/03/2011 for the course HIST 101 taught by Professor M during the Spring '11 term at NJIT.

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Chap013-LN - Chapter 13: Audit Reports CHAPTER 13 Audit...

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