1. The auditor should provide an opinion on the financial statements only if the opinion indicates that the financial statements are fairly stated in all material respects.
2. The auditor's opinion should be provided in a written report.
3. The audit opinion for a U.S. public company includes an introductory paragraph that identifies what was audited and the relative responsibilities of management and the auditor.
4. If an auditor conducts an audit in accordance with multiple auditing standards, only one set of standards can be mentioned in the audit report.
5. If an auditor decides to include explanatory language in the audit report because of concerns about the client's ability to remain a going concern, the explanatory paragraph should include the terms material doubt and going concern.
6. International auditing standards generally permit the auditor to refer to other auditors in the auditor's report, while the U.S. auditing standards allow this reference only if required by law or regulation.
7. A qualified audit report would usually be issued when the client's financial statements contain a justified departure from GAAP.
8. An auditor's inability to obtain evidence that could impact the allowance for loan losses would likely lead to a qualified audit opinion.

  • CreatedSeptember 22, 2014
  • Files Included
Post your question