You have been asked to prepare a brief presentation on the nature and purpose of the auditors'

Question:

You have been asked to prepare a brief presentation on the nature and purpose of the auditors' opinion for your investment club. The club members would like your presentation to answer these questions:
a. How is the "scope" of an audit determined? What role should the auditors' fee play in setting the scope?
b. How can the auditors examine the and related records of a company without reconstructing every financial transaction of the period under examination?
c. In the auditors' opinion, the auditors state whether or not the are presented "fairly." What, if anything, does this opinion of "fairness" have to do with accuracy of the statements?
d. If a company uses an accounting principle that is inconsistent with an FASB pronouncement, what must the auditors disclose?
e. What are the general reasons for issuing a qualified opinion?
How would you answer these questions?
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...