AUDIT REPORTS

1
CHAPTER 2

• AUDIT REPORTS

2
ATTESTATION REPORTS

• AUDIT REPORT ON GAAP STATEMENTS
• SPECIAL REPORT
• ATTESTATION REPORT
• REVIEW REPORT

3
STANDARD UNQUALIFIED AUDIT REPORT

• CONDITIONS FOR REPORT
• ALL STATEMENTS ARE PRESENTED
• THREE GENERAL GAAS STANDARDS MET
• SUFFICIENT EVIDENCE GATHERED
• F/S PRESENTED WITH GAAP
• NO MODIFICATIONS NEEDED

4

• PARTS OF REPORT
• TITLE
• ADDRESS
• INTRODUCTORY PARAGRAPH
• SCOPE PARAGRAPH
• OPINION PARAGRAPH
• NAME OF CPA FIRM
• REPORT DATE

5
CATEGORIES OF AUDIT REPORTS

• STANDARD UNQUALIFIED
• MODIFIED FOR EXPLANATORY PARAGRAPH
• LACK OF CONSISTENCY
• SUBSTANTIAL DOUBT ABOUT GOING CONCERN
• 203 DEPARTURE FROM GAAP
• EMPHASIS OF A MATTER
• OTHER AUDITORS

6

• CONDITIONS REQUIRING DEPARTURE FROM STANDARD
  OPINION
• SCOPE OF AUDIT HAS BEEN RESTRICTED
• FINANCIALS ARE NOT GAAP
• AUDITOR NOT INDEPENDENT
• OTHER REPORTS
• QUALIFIED OPINION
• ADVERSE OPINION
• DISCLAIMER OF OPINION

7
MATERIALITY

• DEFINITION
• AMOUNTS ARE IMMATERIAL
• AMOUNTS ARE MATERIAL BUT NOT PERVASIVE
• AMOUNTS ARE PERVASIVE
• MATERIALITY DECISIONS
• DOLLAR AMOUNT BASE
• SCOPE LIMITATION CONDITIONS

8
CONDITION REQUIRING A DEPARTURE

• SCOPE HAS BEEN RESTRICTED
• CLIENT IMPOSED RESTRICTIONS
• AICPA SUGGESTS A DISCLAIMER
• CIRCUMSTANCE IMPOSED RESTRICTIONS
• DEPENDING ON MATERIALITY
• QUALIFIED OPINION OR DISCLAIMER
• NOT GAAP
• MATERIALITY
• QUALIFIED OR ADVERSE
• 203 DEPARTURES

9
AUDITOR DECISION PROCESS

• CONDITIONS EXIST REQUIRING DEPARTURE?
• DECIDE MATERIALITY FOR SUCH CONDITION
• DECIDE APPRPORIATE REPORT FOR THE CONDITION
• WRITE THE REPORT