Auditor's Report Flashcards
(11 cards)
Components of the Introductory paragraph
Identify the company’s financial statement
Identify management’s responsibilities
Identify auditor’s responsibility
Components of the Scope paragraph
Audit conducted in accordance with GAAS
Reasonable assurance about material misstatement
Examination of evidence on a “test” basis
Principle used and estimates made
Audit provides “reasonable” basis for opinion
Components of Opinion paragraph
1 long sentence
Must mention GAAP
Expression of opinion that financial statements are fairly stated in conformity with GAAP
What financial statements are included in the audit?
Balance sheet
Statements of comprehensive income
Statement of cash flows
Statement of changes in owner’s equity
What is management’s responsibility in relation to the audit?
Providing financial statements to the auditor.
What is the auditor’s responsibility in relation to the audit?
To express an opinion on the financial statements provided by management.
What are the components of GAAS in conducting the audit?
Plan and perform the audit to
Obtain reasonable assurance that
Financial statements are free of material misstatement
What are the primary components of an audit according to the Auditor’s Report?
Examination of evidence about amounts and disclosures on a test basis
Assess the accounting principles used by management
Assess the significant estimates made by management
Evaluate the overall financial statement presentation
What is the work of an audit meant to provide?
A reasonable basis for an auditor’s opinion on management’s financial statements.
What is the language used in an unqualified opinion of an auditor?
The financial statements referred to above present fairly, in all material respects, the financial position, results of operations, and cash flows of the company at the date of the statements
In conformity with US GAAP
What is at the end of the Auditor’s Report
Signature of the CPA Firm
Date (end of fieldwork)
