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Unformatted text preview: and an overall evaluation of ﬁnancial
statement presentation. Finally, the scope paragraph asserts the auditor’s belief
that the audits provide a reasonable basis for the opinion to be expressed in the
The third paragraph contains the auditor’s opinion concerning the fairness of
the ﬁnancial statements based on the audit evidence. Note two important phrases
contained in this paragraph. First, the phrase “present fairly . . . in conformity
A “clean” audit report is referred to as “unqualifed” by PCAOB auditing standards and as “unmodiﬁed”
by AICPA and international auditing standards. See Chapters 2 and 18. mes25435_ch01_001-032.indd 22 26/05/11 9:24 PM Conﬁrming Pages Chapter 1 EXHIBIT 1–1 An Introduction to Assurance and Financial Statement Auditing 23 The Auditor’s Standard Unqualiﬁed Report—Comparative Financial
Statements (with explanatory paragraph) Title: REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Addressee: To the Stockholders of EarthWear Clothiers Introductory paragraph: We have audited the consolidated balance sheets of EarthWear Clothiers as of December 31, 2011
and 2010, and the related consolida...
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This note was uploaded on 12/08/2012 for the course ACCT 564 at Washington University in St. Louis.