Professional Documents
Culture Documents
Audit Reports
1. Report title
2. Audit report address
3. Introductory paragraph
4. Management’s Responsibility
5. Auditor’s Responsibility
6. Opinion Paragraph
7. Name and Address of CPA firm
8. Audit report date
3-2
1. Includes all financial statements
2. Sufficient appropriate evidence
3. Financial statements present in
accordance with U.S.GAAP
4. No circumstances require an explanatory
paragraph or report modification
3-3
3-4
Chapter 6
Audit Responsibilities
and Objectives
The purpose of an audit is to provide financial
statement users with an opinion by the auditor
on whether the financial statements are
presented fairly, in all material respects, in
accordance with applicable financial accounting
framework.
6-6
Financial statements and internal controls.
6-9
Auditor’s Responsibilities
Material Reasonable
misstatements Assurance
Professional
Errors vs. Fraud
Skepticism
Fraudulent
reporting
vs.
theft of assets
6-10
Auditor suspects
Inquire of management
Consult client’s counsel or specialist
Consider accumulating evidence
Auditor knows
Consider effects on financial
statements
Consider effect on relationship
with management
Communicate with audit
committee or equivalent 6-11