Reports and Letters Flashcards
(9 cards)
what is the purpose of the engagement letter?
its to set out the scope, objectives, responsibilities of both parties and basis of the fee
what are the 4 types of auditor opinions?
- unmodified
- qualified
- adverse
- disclaimer of opinion
what does an unmodified opinion mean?
that the financial statements give a true and fair view
what is the audit report?
its the final formal letter issued by the auditor giving opinions about the financial statements
what is the purpose of the management letter?
its to communicate internal control weakness and recommendations to management
when is the engagement letter issued?
at the start of the audit, before any audit work begins
what does an adverse opinion indicate?
that the financial statements are materially misstated and do not give a true and fair view
what does a disclaimer of opinion mean?
the auditor could not obtain sufficient evidence to form an opinion
is the management letter a public document?
no its private and only sent to management
