Term
| The 7 Elements of a Standard Unqualified Audit Report |
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Definition
1)Report Title
2)Audit Report Address
3)Introductory Paragraph
4)Scope Paragraph
5)Opinion Paragraph
6)Name of CPA firm
7)Audit report Date |
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Term
| Four Categories of Audit Reports |
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Definition
1)Standard Unqualified
2)Unqualified with explanatory Paragraph or Modified Working
3)Qualified
4)Adverse of Disclaimer |
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Term
| PCAOB Internal Control Report |
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Definition
| Can be combined with regular audit report however, more commonly they are separate. |
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Term
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Definition
| Unqualified Opinion- Users Opinions are unlikely to be affected |
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Term
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Definition
| Qualified Opinion- Users Decisions are likely to be affected only if the information in question is important to the specific decisions being made. The overall financial statements are presented fairly. |
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Term
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Definition
| Disclaimer or Adverse- Most or all user's decisions based on the financial statements are likely to be significantly affected. |
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Term
| Conditions for Standard Unqualified Audit Report |
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Definition
1) All Statements (BS, CF, IS, RE) have been included in the financial statements
2)The three general statements have been followed in all respects on the engagement
3) Sufficient appropriate evidence has been accumulated, and the auditor has conducted the engagement in a manner that enables him or her to conclude that the three standards of field work have been met.
4) The financial statements are presented in accordance with Generally Acceptable Accounting Principles. This means that Adequate disclosures have been included in the footnotes and other parts of the financial statements.
5) There are no circumstances requiring the addition of an explanation paragraph or modification of the wording of the report. |
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Term
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Definition
| States that the Audit is designed to obtain reasonable assurance about whether the statements are free of material misstatement |
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