The two standard-setting bodies are the PCAOB for the audits of public companies and the ASB for the audits of private companies. Each organization has a standard format for the auditor’s report on the financial statements. There are similarities and differences in the two standard formats.

Required
For each item listed below, indicate if the item or phrase appears in the unmodified audit report of the ASB, the unqualified audit report of the PCAOB, or both. Use the following letters to indicate your answer.
a. Unmodified audit report—ASB
b. Unqualified audit report—PCAOB
c. Audit reports of both bodies—ASB and PCAOB
1. Contains the word “independent” in the title.
2. We have also audited the company’s internal control over financial reporting.
3. In our opinion, the financial statements present fairly, in all material respects, the financial position of the company.
4. We are required to be independent with respect to the company in accordance with the U.S. federal securities laws.
5. Management is responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements.
6. Contains a section on critical audit matters.
7. Dated as of the end of fieldwork.
8. Contains a statement about auditor tenure.
9. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control.
10. Obtain reasonable assurance about whether the financial statements are free from material misstatement.