Wiley CPAexcel Exam Review 2015 Focus Notes: Auditing and Attestation

Module 5

Reporting

Audit Reports

Be familiar with the key details of the standard reports of

• Auditing Standards Board
• Public Company Accounting Oversight Board

Note

The Auditing Standards Board (and International Auditing Standards) use the term “unmodified” while the PCAOB uses the term “unqualified.”

Standard Report—Unmodified Opinion, Nonpublic Company

Required title (“Independent” should be in title)

Addressee (company, board of directors and/or stockholders—not management)

Introductory paragraph

1. Identify the entity audited.
2. Financial statements have been audited.
3. Titles of financial statements.
4. Date or period covered by financial statements.

Management's responsibility for the financial statements (section with this heading)

1. Management's responsibility for preparation and fair presentation of the financial statements following applicable financial reporting framework.
2. Responsibility includes design, implementation and maintenance of IC to allow preparation and fair presentation of financial statements that are free of material misstatement from errors or fraud.

Auditor's responsibility (section with this heading)

1. Express an opinion based on audit
2. Audit conducted in accordance with Generally Accepted Auditing Standards (GAAS) of USA
3. Standards require auditor to plan and perform audit to obtain reasonable assurance financial statements free of material misstatement.
4. Discuss nature of audit procedures.
5. Audit evidence sufficient and appropriate for opinion. ...