ACC $640$ Milestone Three Guidelines and Rubric

Overview

This milestone will give you practice with drafting audit reports. When you write an audit report, there are the following four opinion types that an auditor can formulate: an unqualifi edopinion $($or clean report$),$ qualifi ed opinion, disclaimer of opinion, and adverse opinion. In this milestone, you will focus on the simplest opinion type: the unqualifi ed opinion. In Project Two inModule Nine, you will consider all four opinion types.

Scenario

You are an auditor for Tuesday & Co$.,$ CPAs. Your supervisor has asked you to prepare an audit report for Crusoe, one of the fi rm$$s clients. You begin your audit report by reviewing the relevantbackground information on Crusoe.ACC $640$ Tuesday and Crusoe Background Information

Tuesday$$s audit report was submitted to Crusoe$$s board of directors based on the $2022$ and $2023$ comparative financial statements. Tuesday conducted an audit of Crusoe$$s internal controls over financial statements based on the $2013$ COSO framework. No material weaknesses were identified. Below is the information for $2022$ and $2023,$ respectively:

$$

For the year ended December $31,2022,$ Tuesday & Co$.,$ CPAs $($Tuesday$)$ audited the financial statements of Crusoe, a public company, and expressed an unqualified opinion of the balance sheet only. Tuesday did not observe the count of the physical inventory as of December $31,2021,$ because that date was prior to its appointment as auditor. Tuesday was unable to satisfy itself regarding inventory by means of other auditing procedures, so it did not express an opinion on the other financial statements that year.

$$

For the year ended December $31,2023,$ Tuesday expressed an unqualified opinion on all the basic financial statements and satisfied itself as to the consistent application of Generally Accepted Accounting Principles. The fieldwork was completed on March $12,2024$; the partner$-$in$-$charge reviewed the working papers and signed the auditor$$s report on March $19,2024.$ The report on the comparative financial statements for $2023$ and $2022$ was delivered to Crusoe on March $21,2024.$

Directions

Prepare the audit report for the fi rm$$s client.

Specifi cally, you must address the following rubric criteria:

$1.$

Outline the possible

assertions

regarding the fi nancial data. Consider the following:

A$.$

Accuracy and valuation, existence, completeness, rights and obligations, and presentation and disclosure

$2.$

Describe the

control gaps and anomalies

$($Critical Audit Matters $($CAMs$))$ present in the summary of audit fi ndings.

$3.$

Describe the

connection

between the fi ndings and generally accepted auditing standards $($GAAS$).$

$4.$

Summarize an

opinion of the audit results

$.$ Include the following:

A$.$

The validity of the results The impact of the external audit on the client

B$.$

Identify the required elements to be communicated $($CAMs$)$ in the audit report.