Question 1 - corporations, the audit committee of the board...

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Desirae Wynn Auditing Question 1 The auditor’s standard unqualified report consists of three paragraphs. The first paragraph is referred to as the introductory paragraph. It clearly states the financial statements that have been audited, that the financial statements are the responsibility of management, and the auditors’ responsibility is to express an opinion on them. The second paragraph is called the scope paragraph. The scope paragraph describes the nature of the audit. The final paragraph, the opinion paragraph, presents the auditors’ opinion on whether the financial statements are in conformity with accounting principles accepted in the United States. The auditors’ report has a title that includes the word independent. The auditors report is addressed to the person or persons who retained the auditors. In case of
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Unformatted text preview: corporations, the audit committee of the board of directors ordinarily nominates the auditors and the stockholders approve the nomination. Therefore, these reports are usually addressed to the board of directors and stockholders of the corporation. The audit report is signed with the name of the CPA firm, not the name of an individual partner in the firm. The signature stresses that it is the firm, no the individual, that takes responsibility for the audit report. The audit report should not be dated earlier than the date on which the auditors have obtained sufficient appropriate audit evidence to support their opinion on the financial statements. This date is normally the last day of fieldwork, which is the date upon which the auditors conclude their investigative and documentation review procedures....
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