The standard unmodified report contains several important sentences and phrases. Give an explanation of why each of

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The standard unmodified report contains several important sentences and phrases. Give an explanation of why each of the following phrases is used instead of the alternative language indicated.
1. Address: “To the Board of Directors and Stock-holders” instead of “To Whom It May Concern.”
2. “We have audited the balance sheet of Any company as of December 31, 20X2, and the related statements of income, retained earnings, and cash flows for the year then ended” instead of “We have audited the attached financial statements.”
3.
“We conducted our audit in accordance with generally accepted auditing standards” instead of “Our audit was conducted with due audit care appropriate in the circumstances.”
4. “In our opinion, the financial statements referred to above present fairly in conformity with generally accepted accounting principles” instead of “The financial statements are true and correct.”

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Auditing An International Approach

ISBN: 978-0071051415

6th edition

Authors: Wally J. Smieliauskas, Kathryn Bewley

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