A disclaimer of opinion should be issued any time an auditors independence is violated or if he is unable to complete the entire audit for some reason. In a qualified or adverse opinion, an additional paragraph should be added for each problem found within the financial statements. The basic format for each of these opinions is pretty much pre-established. The auditor should issue either an unqualified, qualified, adverse, or disclaimer of opinion. Finally, the auditor must express an opinion on the financial statements. Footnotes must contain all the relevant information needed to be able to properly interpret the financial statements. Any deficiencies in this area should be specifically stated in the audit report. Unless stated otherwise, it should be assumed that the informative disclosures stated in the financial statements are adequate. The audit report must explicitly state whether the financial statements have been prepared in conformity with GAAP and whether or not these principles have been applied consistently from one year to the next. ![]() ![]() ![]() They are concerned with whether the financial statements are presented in accordance with Generally Accepted Accounting Principals (GAAP), consistency, informative disclosures, and an expression of opinion on the financial statements that have been audited. Standards of Reporting There are four standards of reporting. He should obtain the most reliable evidence available and select the best procedures to obtain that evidence.
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