The auditors report is the main product or output of

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The auditor’s report is the main product or output of the audit. The audit report with an unmodified (‘clean’) opinion is the most common type of report issued.
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Reporting Standards Audit Opinion (ISA 700, ISA 701, ISA 702) The format of a typical audit report has the following sections: 1. title 2. addressee 3. introductory paragraph 4. management’s responsibility for the financial statements 5. auditor’s responsibility 6. auditor’s opinion 7. other reporting responsibilities 8. auditor’s signature 9. date of the auditor’s report 10.auditor’s address
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Issuance of Audit Report The Auditor’s Standard Report with an Unmodified Opinion
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Issuance of Audit Report
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Issuance of Audit Report The title line of the audit report includes the word Independent’ , and usually, the report is addressed to the stockholders of the company. The audit report includes an introductory paragraph , a management’s responsibility paragraph , an auditor’s responsibility paragraph , and an auditor’s opinion paragraph . The audit report is signed and dated . Adverse Qualified Unmodified
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Issuance of Audit Report The auditor may issue a modified opinion. Suppose an auditee’s financial statements contain a misstatement that the auditor considers material and the client refuses to correct the misstatement. The auditor will likely qualify the opinion, explaining that the financial statements are fairly stated except for the misstatement identified by the auditor.
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Issuance of Audit Repor t The auditor may issue an adverse opinion. Suppose a client’s financial statements contain a material misstatement and the auditor considers the significance of the effect on the financial statements of the material misstatement pervasive . Given such a situation, the auditor will issue an adverse opinion, indicating that the financial statements are not fairly stated and should not be relied upon.
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Auditing Demands Logic, Reasoning and Resourcefulness An auditor needs to understand more than just the accounting concepts and techniques. Auditing is a fundamentally logical process of thinking and reasoning – so use your common sense and reasoning skills! As you learn new auditing concepts, take some time to understand the underlying logic and how the concepts interrelate with other concepts. Being a good auditor sometimes requires imagination and innovation.
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Quality Control Standards that guide on quality control for auditors ISQC 1 Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements
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Elements of ISQC 1 Leadership ISQC 1 Elements Ethical Requirements Client Relationship Human Resources Engagement Performance Monitoring Documentation 37
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